Rudi’s View: Seven Group, a2 Milk And DuluxGroup

rudi-views
Always an independent thinker, Rudi has not shied away from making big out-of-consensus predictions that proved accurate later on. When Rio Tinto shares surged above $120 he wrote investors should sell. In mid-2008 he warned investors not to hold on to equities in oil producers. In August 2008 he predicted the largest sell-off in commodities stocks was about to follow. In 2009 he suggested Australian banks were an excellent buy. Between 2011 and 2015 Rudi consistently maintained investors were better off avoiding exposure to commodities and to commodities stocks. Post GFC, he dedicated his research to finding All-Weather Performers. See also "All-Weather Performers" on this website, as well as the Special Reports section.

Rudi's View | Nov 23 2017

In this week's Weekly Insights (this is part two):

-Equities Bull Market: It's Raining Warnings
-Commodities And A Greener China
-Conviction Calls: Goldman Sachs, Ord Minnett, Bell Potter, CLSA, And Morgans
-Predicting December Index Changes

-Matt Barrie's Manifesto
-IPOs In September Quarter
-Rudi On BoardRoom.Media (Updated)
-2016 - L'Année Extraordinaire
-All-Weather Model Portfolio
-Rudi On TV
-Rudi On Tour

[Note the non-highlighted items appear in part two on the website on Thursday]

Conviction Calls: Goldman Sachs, Ord Minnett, Bell Potter, CLSA, And Morgans

By Rudi Filapek-Vandyck, Editor FNArena

Investors(still) looking to jump on board the reversal in fortune for contractors and services providers to mining and oil and gas companies should opt for Seven Group Holdings ((SVW)) and ignore Monadelphous ((MND)), according to the latest sector update by analysts at Goldman Sachs.

The analysts can still see upside for Seven West shares, though less so with each added day of positive share price performance of course, but their price target of $11 sits -35% below Monadelphous' share price on Friday, suggesting a whole lot needs to move into the right direction before those shares can grow into the current share price.

Not going to happen, declare the analysts. They only see muted energy spending growth in the years ahead. All other stocks in the sector are currently rated Neutral, including WorleyParsons ((WOR)), whose rating has been upgraded on the updated outlook for spending by oil and gas producers across the globe.

The updated price target for WorleyParsons, at $13.70, still sits below the share price, but nowhere nearly as far away as is the case for Monadelphous. The obvious caveat here is that were oil and gas companies to accelerate their spending plans, for whatever reason, present assumptions and forecasts will prove too conservative.

Goldman Sachs' price target for Seven West has lifted to $13.55.


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