The Bottom Line

We believe signs are emerging the that “AI Disruption Trade” is overdone but the current bond market turmoil is likely to weigh on the sector short term.

• We like XRO into a pullback sub $80 believing it can rerate higher in the next 6-12 months.
• Telstra is starting to interest us again for yield after its ~18% pull back.
• We like CRM around US$250 but much of the AI rerating has already unfolded.
• We  will reconsider BVS if it retreats back towards the $2.50 level.