Company Interview / Top stock picks for a market dip

Key points

Lane sees recent ASX sell-off creating value, especially in small capsBreville Group (ASX:BRG) upgraded to buy with a $37.20 targetService Stream (ASX:SSM) preferred for recurring infrastructure and defence workAussie Broadband (ASX:ABB) and Beacon Lighting (ASX:BLX) dropped from conviction list but still rated buy

Australian equities surge more than 2%, a move Davie Lane from Ord Minnett describes as stronger than expected given lingering global uncertainty and heightened geopolitical risks. Lane points to heavy March selling, with the ASX 200 down about 7% and small caps falling even further, as creating value across quality names. He notes Australian investors appear willing to re‑enter the market, particularly where share price declines contrast with steady fundamentals.

Lane highlights Breville Group (ASX:BRG) as a key addition to Ord Minnett’s analyst conviction list, upgraded from accumulate to buy after a significant pullback. He argues Breville’s manufacturing transition away from China for much of its US production reduces tariff risk and supports margins. In his view, strong global brand recognition, especially in coffee machines, and a pipeline of new products underpin earnings growth potential, with a target price of $37.20 suggesting meaningful upside.

Service Stream (ASX:SSM) is another new conviction pick. Lane cites its focus on maintenance and upgrade contracts in water, energy, infrastructure and expanding defence work as offering steadier risk than full design-and-construct players. Aussie Broadband (ASX:ABB) and Beacon Lighting (ASX:BLX) are removed from the conviction list, though Lane still maintains buy views on both.