Company Interview / Why Ryan thinks Coles checked out of the Greencross deal

Key points:

Coles’ decision to abandon Greencross is seen as reducing leverage risk and refocusing on core assetsMacquarie, CBA and platform stocks AMP, Netwealth and Hub24 are viewed as key beneficiaries of improving market activityREA Group is seen as offering attractive risk‑reward despite housing market pessimism

Ryan McCaughtery from Sandstone Insights views Coles Group (ASX:COL) walking away from the rumoured Greencross acquisition as a distinctly positive outcome. McCaughtery argues the deal would have required uncomfortable leverage and added distraction at a time when Coles’ liquor business is under pressure. In his view, renewed focus on core assets and shareholder returns is the right strategic path.

Turning to financials, McCaughtery highlights strong markets activity at Goldman Sachs and JPMorgan as a supportive backdrop for Macquarie Group (ASX:MQG). He states Macquarie appears to be returning to its historical pattern of under‑promising and over‑delivering, with asset sales, performance fees and commodities volatility all seen as earnings tailwinds. Commonwealth Bank (ASX:CBA) is also expected, in his view, to see a modest benefit from increased trading interest around US IPOs.

In wealth and property, McCaughtery considers AMP (ASX:AMP) materially undervalued on about 11x PE, pointing to improving underappreciated businesses, buyback capacity and better capital discipline. He sees structural tailwinds for platforms Netwealth (ASX:NWL) and Hub24 (ASX:HUB). For REA Group (ASX:REA), McCaughtery notes listing volumes are improving and regards current multiples as attractive for medium‑term investors. In fintech, he sees global M&A interest in PayPal as a signal for sector consolidation, nominating Block (ASX:SQ2) and Zip (ASX:ZIP) as his highest‑conviction local plays.