Viewpoint: Bullish

PPS +2.67%: We considered adding the investment platform stock into the Emerging Companies portfolio yesterday, though stayed on the sidelines given our broader market call & the stocks strength.

Leading into this update we’ve seen a consistent string of broker upgrades, Goldman Sachs upped it to $2.20 price target , Bell Potter to $2.35, and Morgan Stanley to a bullish $2.60, in other words, the market had become universally bullish WHC as coal prices rallied and WHC management did a good job of talking up the stock with a marketing push around town.

Pathology and diagnostic imaging business SHL has been a huge winner post COVID and although its bounced strongly after its recent 20% correction we remain bullish targeting fresh all-time highs.

Private hospital operator RHC has been trading sideways for almost a year and we feel as the COVID backdrop improves this quality business is positioned strongly. Our 4% holding is not huge and we may look to increase as we tweak across other areas.

Natural gas infrastructure business like SKI has been fairly boring of late but again a yield above 5% is attractive.

SKI invests in infrastructure assets, it’s been a pretty boring journey over recent years but we like it in today’s economic environment. An almost 7% unfranked yield is not to be sniffed at with term deposits around zero.

Conversely the local Healthcare Sector looks constructive after a tough 18-months, so far 2021 has been one of stock / sector rotation and the healthcare space does look bullish moving forward after being lest floundering for the last year.

However if we do see a pullback in some sectors such as the banks then the obvious question is where will all the money go because we know there’s plenty in circulation as the printing presses keep rattling on around the world.

Local BNPL goliath APT has played second fiddle to our preferred sector play Zip (Z1P) over recent sessions but it’s still rallied almost 30% from its 2021 low.