Smart Group (SIQ) provides salary packaging and fleet management services. In the August result, Smart Group saw strong earnings resilience in the face of weak consumer trends.
“With strong cashflow, there’s the possibility of acquisitions or capital management to help boost returns,” she says.
“This is a company that could see upgrades over the next 18 months,” she adds.
With weak retail conditions prevailing globally, Julia doesn’t like GPT.
“Shopping centres around the world continue to feel the bite of a weaker consumer and structural shifts to online. And Aussie retail REITs are no different,” she says.
“Here in Australia, we’re seeing major brands decreasing footprint and speciality sales continuing to slow down.
“Reports from GPT and the sector suggest there’s more weakness to come and we could see further negative revisions to the valuation of shopping centre landlords,” she adds.
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