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Jonathan Tacadena, MPC Markets 

 

BUY RECOMMENDATIONS

 

BUY – Findi (FND)

Findi presents an opportunity as it’s the only ASX listed company offering exposure to India’s rapidly expanding financial services sector. The company operates more than 20,500 automatic telling machines across India and has secured a lucrative 10-year contract with the State Bank of India, which is expected to generate substantial revenue and EBITDA. Findi’s subsidiary TSI India recently raised $37.6 million from a leading Indian investment group. This capital injection will fuel both organic growth and acquisitions, including expansion of digital payments and ATM networks.

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BUY – Newmont Corporation (NEM)

Global economic uncertainty typically drives investors towards safe haven assets like gold. Central banks, particularly in emerging markets, are increasing their gold reserves as a hedge against economic instability. Newmont, as the world’s largest gold producer, is well positioned to benefit from potentially rising gold prices given its extensive reserve base and global operations. The company’s strong financial position and dividend policy also make it attractive for investors seeking both growth and income in the gold sector.

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HOLD RECOMMENDATIONS

 

HOLD – Johns Lyng Group (JLG) 

The group delivers building and restoration services across Australia and the US. The company’s appointment to the Allstate’s Emergency Response and Mitigation Panel provides access to about 16 million policyholders, marking a significant milestone in its US growth strategy. JLG’s proven business model in Australia thrives on disaster recovery and restoration services. Recent hurricanes and other extreme weather events in the US strengthens JLG’s growth prospects as a beneficiary of increasing disaster recovery work.

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HOLD – Mineral Resources (MIN)

Despite chief executive Chris Ellison stepping down within the next 18 months, MIN remains an attractive investment. The company’s diverse portfolio, which includes mining services, iron ore and lithium operations, provides a balanced revenue stream. The successful delivery of the Onslow Iron project, which achieved first ore shipment ahead of schedule, demonstrates the company’s operational capabilities and potential for future growth. MIN’s strong position in the lithium market, coupled with its ability to adapt to market conditions, offers exposure to the growing electric vehicle and renewable energy sectors. Also, the company’s focus on cost reductions and cash preservation during challenging market conditions showcases prudent financial management.

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SELL RECOMMENDATIONS

 

SELL – The a2 Milk Company (A2M)

The infant formula company posted revenue of $NZ1.6755 billion in fiscal year 2024, an increase of 5.2 per cent on the prior corresponding period. Sales in the China and other Asia segment were up 14.1 per cent, while sales in the Australian and New Zealand segment were down 14.6 per cent. The company expects challenging conditions in China’s infant milk formula market and a further market value decline in fiscal year 2025. We expect the shares to remain under pressure given what we consider a softer outlook amid supply chain constraints. The shares have been trending down since October 10.

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SELL – Commonwealth Bank of Australia (CBA) 

Australia’s biggest company appears overvalued at current levels, trading at a price/earnings ratio well above its historical average. The strong share price performance in calendar year 2024 has pushed CBA to lofty valuations that may be difficult to justify. With interest rates likely to remain elevated for an extended period, CBA faces headwinds to profit growth and potential increases in loan arrears. In our view, CBA’s current share price seems to have priced in an overly optimistic outlook.

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Nathan Lodge, Securities Vault

 

BUY RECOMMENDATIONS

 

Top Australian Brokers

 

 

BUY – Highfield Resources (HFR)

This potash company is focusing on constructing its Muga project in Spain. Recently, Highfield entered into binding agreements with Yankuang Energy and several other strategic investors in a plan to deliver the remaining funding for the phase 1 Muga project. The transaction may transform HFR into a globally diversified potash company. Potash is an ideal fertilising material, which is under resourced across the globe. The deal will close with regulatory approvals required in multiple jurisdictions. Upside includes potentially higher potash prices and a low cost of production.

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BUY – Live Verdure (LV1) 

Live Verdure is a health, wellness and skin care company. Recently, LV1 formed a strategic partnership with technology company Decidr, which operates a software solutions platform. This partnership will bring cutting-edge, artificial intelligence powered tools to LV1, which should assist in securing new contracts across multiple industries. LVI shares have risen from 39.5 cents on August 14 to trade at 74.5 cents on November 14.

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HOLD RECOMMENDATIONS

 

HOLD – Merino & Co (MNC)

This Australian wool company listed on the ASX on October 30, 2024. Shares in the initial public offering were priced at 20 cents. The stock closed at $1.45 on November 5. It was trading at 59.5 cents on November 14. We like the outlook for this vertically integrated company. It’s involved in making, marketing and selling wool products. It has more than 600 points of sale across Australia and also exports to China, Japan and North America.

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HOLD – Cambium Bio (CMB) 

Cambium Bio is a clinical stage, regenerative medicine company. It focuses on developing innovative biologics for ophthalmology and tissue repair applications. Its lead product candidate Elate Ocular is being developed to treat dry eye disease. The company announced in October that chief executive Karolis Rosickas acquired an additional 38,717 CMB shares on the open market during the trading window after the release of the company’s 2024 annual report. This demonstrates confidence in the company’s ambitious growth strategy during the next six to 12 months.

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SELL RECOMMENDATIONS

 

SELL – Flynn Gold (FG1)

The company is exploring for gold and battery metals (lithium, tin, nickel and zinc) in Tasmania and Western Australia. In Tasmania, it holds 12 granted exploration licences. In Western Australia, it holds 24 tenements and applications. FG1 made a recent announcement about the Golden Ridge project in Tasmania. The estimated range of potential mineralisation for the JORC compliant exploration target is between 3.5 million to 5.4 million tonnes grading at between 3 and 4 grams per tonne of gold for between 449,000 ounces to 520,000 ounces of contained gold. The company announced there had been insufficient exploration to estimate a mineral resource. It was uncertain if further exploration would result in a mineral resource estimate. In our view, the company’s share price is underperforming given the gold market’s strong run.

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SELL – Commonwealth Bank of Australia (CBA)

The share price of Australia’s biggest bank has enjoyed an incredible run. It has risen from $102.29 on November 16, 2023, to trade at $151.65 on November 14, 2024. The shares have kept rising despite a 6 per cent fall in statutory net profit after tax in fiscal year 2024 when compared to the prior corresponding period. It was recently trading on a lofty price/earnings ratio above 26. At these levels, we believe the shares are trading at a substantial premium, so it may be prudent to cash in some gains.

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Michael Gable, Fairmont Equities

 

BUY RECOMMENDATIONS

 

BUY – Fortescue (FMG)

There’s encouraging signs on the technical charts that FMG has bottomed and is ready to head higher again. After bouncing strongly in September, FMG was then subjected to selling pressure in October and November. Total iron ore shipments of 47.7 million tonnes in the first quarter of fiscal year 2025 were up 4 per cent on the prior corresponding period. This included 1.6 million tonnes from Iron Bridge, which was higher than full year shipments in fiscal year 2024. In our view, the company’s outlook is brighter.

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BUY – Macquarie Group (MQG)

This diversified financial services company posted a net profit after tax of $1.612 billion in the first half of fiscal year 2025, up 14 per cent on the prior corresponding period, but down 23 per cent on the second half of fiscal year 2024. The shares took a dip on the result. Guidance is often conservative, so the dip presents a buying opportunity. We expect the company to outperform moving forward. Macquarie enjoys a strong track record.

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HOLD RECOMMENDATIONS

 

HOLD – Life360 Inc. (360)

This information technology company provides a mobile networking safety app for families. The company recently posted third quarter results for fiscal year 2024. Total revenue of $92.9 million was up 18 per cent on the prior corresponding period. Total subscription revenue of $71.8 million was up 27 per cent. The shares have risen from $7.48 on January 2 to trade at $22.68 on November 14. Upwards momentum remains intact.

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HOLD – Catapult Group International (CAT)

This sports technology solutions company posted a strong first half result in fiscal year 2025. Revenue increased to $A85 million, up 19 per cent on the prior corresponding period. Annualised contract value (ACV) of $A143 million was up 20 per cent on a constant currency basis. ACV is Catapult’s leading indicator of future revenue. We expect the stock to continue generating favourable momentum as it expands into overseas markets. The shares have risen from $1.40 on February 14 to trade at $2.81 on November 14.

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SELL RECOMMENDATIONS

 

SELL – AGL Energy (AGL)

We expect the expiry of cheap coal and gas supply contracts to negatively impact underlying earnings moving forward. The company posted underlying net profit after tax of $812 million in fiscal year 2024, up 189 per cent on the prior corresponding period. It has guided for underlying profit to range between $530 million and $730 million in fiscal year 2025, partially in response to lower wholesale electricity prices. The shares have fallen from $12.01 on August 20 to trade at $10.46 on November 14.

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SELL – Domino’s Pizza Enterprises (DMP)

Same store sales in Japan and France were negative in the first 17 weeks of fiscal year 2025. Net profit after tax fell 1.9 per cent in fiscal year 2024. The company’s chief executive Don Meij has decided to step down after 22 years at the helm. The shares have fallen from $59.28 on January 2 to trade at $28.85 on November 14. We expect the company to remain under pressure, at least in the short term, given a challenging outlook amid fierce competition.

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The above recommendations are general advice and don’t take into account any individual’s objectives, financial situation or needs. Investors are advised to seek their own professional advice before investing. Please note that TheBull.com.au simply publishes broker recommendations on this page. The publication of these recommendations does not in any way constitute a recommendation on the part of TheBull.com.au. You should seek professional advice before making any investment decisions.