Company Interview / Henry's watching the takeover trail

Key points:

Jennings flags slowing bank mortgage growth and cooling housing marketCAR result and AI seen as a key test for Australian tech stocksStrong M&A pipeline across Tabcorp, FleetPartners, SG Fleet and Southern Cross Media

Henry Jennings from Marcus Today sets out a cautious but constructive view on Australian equities as reporting season accelerates. Jennings highlights slowing mortgage demand at Westpac (ASX:WBC), noting that budget measures and tighter conditions appear to be cooling the housing market, with auction clearance rates and prices under pressure. He points out that National Australia Bank (ASX:NAB) is experiencing a similar fall in mortgage applications, and regards the overall resilience of the majors as a surprise given rising risks.

On Carsales.com (ASX:CAR), Jennings sees questions around artificial intelligence and disruption as central for Australian tech names such as Xero (ASX:XRO) and WiseTech Global (ASX:WTC). He states that CAR’s upgraded international guidance and its strategy to harness AI rather than be undermined by it provide some reassurance, especially after the share price decline from around $42 to below $30.

M&A activity is another key theme. Jennings notes Tabcorp (ASX:TAH) is paying about $250 million for a bookmakers platform, arguing buying capability is cheaper than building. He also points to competitive bidding tension around FleetPartners Group (ASX:FPR) and SG Fleet Group (ASX:SGF), alongside a $1.70-a-share bid for oOh!media (ASX:OML), highlighting the premium corporates are willing to pay for ASX assets compared with their public market valuations.