Company Interview / The mid-cap outlier Henry is backing

Key points:

View that weaker oil and lower bond yields are providing near-term support for equitiesPreference for coal and steady gold exposure amid Asian energy disruptions and shifting rate expectationsCaution on beaten-down healthcare and tech names such as $CSL, $RMD, $COH, $XRO and $WTC into tax-loss season

Henry Jennings from Marcus Today states that equity markets appear cautiously optimistic following President Trump’s latest Middle East negotiations, with traders interpreting the move as edging closer to an oil-related resolution. Jennings notes that weaker oil prices and falling bond yields in Europe, the US and Australia are currently supportive for equities, even as indices remain in “wait and see” mode ahead of further geopolitical and policy developments.

Jennings highlights coal as a relative bright spot, arguing that a recent accident in China and LNG disruptions in Asia are lifting demand for thermal coal, which in his view benefits Australian coal miners in the short term. He also maintains gold exposure, suggesting that any gradual easing in inflation and a more dovish stance from the new Federal Reserve chair could aid oversold gold stocks, despite pushback from figures such as Christopher Waller on maintaining a dovish bias.

Healthcare and technology remain under pressure, with Jennings pointing to CSL (ASX:CSL), ResMed (ASX:RMD), Cochlear (ASX:COH), Xero (ASX:XRO), WiseTech Global (ASX:WTC), REA Group (ASX:REA), Carsales (ASX:CAR) and SEEK (ASX:SEK) as potential targets for tax-loss selling into year-end. One exception on his radar is Catapult Group (ASX:CAT), which he views positively after record ACV and revenue, suggesting upside from around $3.25 towards $4.00.