1 October we become SureStone CapitalSame team, same ABN. Our website and email addresses move to surestone.com.au.
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Key points:
Preference for UL Solutions (NYSE:ULS) as a high‑growth certification play in emerging tech More cautious stance on ALS Limited (ASX:ALQ) given cyclicality, margins and valuation Selective AI and semiconductor exposure via (NYSE:TSM), (NASDAQ:GOOG) and (NASDAQ:AMZN) without chasing momentum
David Walsh from Sarto Advisory sets out why test, inspection and certification is a key focus, highlighting UL Solutions (ASX:ULS) as a standout. Walsh notes that the US‑listed group leverages megatrends in industrial electronics, robotics, HVAC and data centres, with organic growth in the mid‑single digits and profits rising above 20%. He points to expanding opportunities as new tech products require more certification, including UL Solutions’ first certification of a fully autonomous shelf‑scanning robot for supermarkets.
Comparing this with ALS Limited (ASX:ALQ), Walsh sees a more cyclical profile anchored in mining and minerals, boosted by strong gold and commodity prices, alongside slower‑growing life sciences. He flags lower margins and acquisition integration, and views valuation as demanding, with the market cautious ahead of upcoming earnings and guidance.
On broader markets, Walsh maintains long‑held semiconductor exposure via Taiwan Semiconductor ($TSM), Alphabet ($GOOGL) and Amazon (NASDAQ:AMZN), but is wary of chasing crowded AI trades. In Australia, he views healthcare as a “fallen angels” hunting ground, citing CSL (ASX:CSL), Cochlear (ASX:COH) and Sonic Healthcare (ASX:SHL), while expressing serious concerns about CSL’s repeated downgrades and management credibility. He also sees Life360 (ASX:360) as vulnerable to any softness in user metrics despite upgraded EBITDA guidance.
