Company Interview / Where Jack's bargain hunting amid the selloff

Key Points:

Policy uncertainty seen undermining Australian investor confidenceCBA (ASX:CBA) and (ASX:CSL) viewed as high-quality names facing valuation and structural headwindsResMed (ASX:RMD) and Aristocrat Leisure (ASX:ALL) cited as quality growth opportunitiesBooking Holdings (BKNG) seen as a global travel leader benefiting from a capital-light model

Australian markets face rising uncertainty as global bond yields climb and domestic policy settings shift, according to Jack Stickley from Morgans. Stickley notes that recent budget proposals, including changes to superannuation, capital gains tax and discretionary trust distributions, are weighing on confidence. Clients are reportedly cautious, with many delaying structural decisions amid concerns over potential impacts on franking credits and negative gearing, even though nothing is yet legislated.

On equities, Stickley highlights the sharp move in Commonwealth Bank (ASX:CBA), suggesting the stock had been “priced to perfection” after a strong two-year run. In Stickley’s view, recent weakness stems less from a slightly softer trading update and more from worries that budget measures may dampen investment and loan demand, with implications for CBA’s mortgage and business lending books. CSL (ASX:CSL) is also cited as a major disappointment, trading under $100 despite generating significant profits, with the recent write-down of the Vifor acquisition seen as particularly discouraging.

Looking for opportunities, Stickley points to quality growth names that have been sold off. ResMed (ASX:RMD), Aristocrat Leisure (ASX:ALL) and US-listed Booking Holdings ($BKNG) are highlighted as long-term compounders whose recent share price weakness is viewed as a chance to accumulate.