Michael likes Macquarie Group (MQG). “A new pivot for MQG towards renewables could provide the next valuation leg-up,” he says.
“Its share price is stabilised and now rising.
“MQG may also benefit from its agile structure, as the Big 4 banks focus on regulatory issues,” he adds.
However APA Group (APA) is on Michael’s dislike list. “APA’s pipeline owner is trading on a P/E ratio higher than 35 times,” he says.
“Despite its near monopoly and good longer-term growth prospects, its share price failed repeatedly around $11.25.
“I suspect a pullback towards $10 is on the cards,” he adds.
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