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:
NextDC (ASX:NXT) experiences renewed momentum following high-profile customer wins and demand accelerationPremier Investments (ASX:PMV) faces scrutiny on Smiggle’s underperformance, offset by a strong Peter Alexander divisionRio Tinto (ASX:RIO) and BHP (ASX:BHP) benefit from resource price rallies and operational changes, with further upside anticipatedCommonwealth Bank (ASX:CBA) seen as solid but expensive, with resource stocks currently favoured over bank
John Lockton from Sandstone Insights outlines several key market drivers amid recent announcements across the tech, retail, and resources sectors. Lockton notes a significant turnaround for NextDC (ASX:NXT), driven by heightened demand in customer inquiry and billing, alongside a flagship partnership with OpenAI. Lockton states that two major announcements should help stabilise NextDC's share price following a period of pressure, adding that with no need for capital raising to fund data centre expansion over the next two years, renewed momentum is likely to support further gains.
Turning to Premier Investments (ASX:PMV), Lockton points to market disappointment primarily stemming from the company's reported earnings, particularly the underperformance of Smiggle. While Peter Alexander shows robust growth with international expansion, Smiggle's sluggish earnings raise concerns, prompting sharp declines in Premier’s share price. Lockton questions whether the company should have sold more of its brands to Myer (ASX:MYR) and expresses uncertainty on whether a $100 million buyback will suffice to offset current headwinds.
On the resources front, Lockton sees ongoing opportunities for Rio Tinto (ASX:RIO) and BHP (ASX:BHP). Both companies, buoyed by record copper prices and restructuring moves, may be positioned for further share price gains into 2026. Commonwealth Bank (ASX:CBA) also comes into focus, with Lockton highlighting its premium valuation and strong balance sheet, but prefers resource stocks in the near term.
