Stock Tips: You might not want to sleep on this week’s picks
Sleep-health stock Resmed is among this week's 'buys'. Pic: Getty Images
It’s no easy gig analysing share prices and company performance but somebody’s got to do it. Every week two experts from our Share Tips columnist pool give us their recommendations.
DAVID THANG – Sequoia Financial Group
BUY
Recent changes in US reimbursement policies are expected to create stronger demand and wider adoption for Polynovo’s advanced wound care products, enhancing future growth prospects.
Global leader in sleep and respiratory care. The ageing population and reliance on sleep apnoea products has translated to consistent annual revenue growth.
HOLD
Leading energy infrastructure company with stable earnings. Investors are rewarded with a 6.50 per cent dividend yield.
It has solid top-line revenue growth across Europe, Asia Pacific and America. Rising demand for cloud connectivity globally is expected to fuel long-term expansion.
SELL
Star Entertainment Group (ASX:SGR)
It faces a liquidity crisis, regulatory risks and cash is drying up. Other companies appeal more.
The Australian government’s smaller-than-expected increase in residential aged care funding may impact future earnings.
TONY PATERNO – Ord Minnett
BUY
Further progress on the merger execution and a return to above system loan growth should drive the upside. MYS is trading on attractively priced trading multiple and fully franked dividend.
We view this recent weakness as a buying opportunity. The strong balance sheet and elevated capex program supports earnings forecasts into the second half.
HOLD
Profitability has recovered as the gap between farmgate milk prices and global commodity prices has narrowed.
SSG maintains a strong market position in the personal care segment, generating high returns on invested capital. Given the exceptional work done to improve its margins and profitability.
SELL
Soft conditions in the US building market were well-flagged, but the scale of the sales slump – to double-double digits from low single-digit. It also shows a worrying lack of visibility over future earnings.
LYC is capitalising on a peak share price, to tap shareholders tapped for yet-to-be-found opportunities. LYC also conceded that the planned Seadrift plant is probably no longer effective.
The views, information, or opinions expressed in the interviews in this article are solely those of the interviewees and do not represent the views of Stockhead.
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