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Wilson Asset Management is a popular provider of ASX-listed investment companies in Australia.
Unlike much of the sector, shares for Wilson’s funds are often trading at a premium to the net tangible asset (NTA) value.
So when its fund managers speak, investors listen.
In a Wilson video last week, four of its analysts sat together for a quick-fire session where they had to call buy, sell or hold for a whole bunch of ASX shares.
Here are the 6 of the stocks they declared as “buy”:
MA Financial Group Ltd (ASX: MAF)
The financial company formerly known as Moelis is a “strong buy” for equity analyst Sam Koch.
“The next Macquarie Bank!” he said.
“They can grow earnings in three ways: funds management, corporate advisory business and the new lending business… The market’s not really appreciating the earnings growth in that new lending side of things.”
MA Financial shares are up 21% this year, closing Tuesday at $5.57.
“They’ve upgraded guidance already this year, and we see further tailwinds for that business.”
Sealink Travel Group Ltd (ASX: SLK)
Equity analyst Shaun Weick said his team was bullish on Sealink.
“The pent-up demand, we think, in the tourism industry is significant… Their Transit Systems bus business, as well, has proved to be a great acquisition.”
Sealink shares are already up 39.7% this year, to close Tuesday at $9.43.
“We think the catalyst from here is really concentrated around additional contract wins — so that one’s a ‘buy’ for us.”
Genworth Mortgage Insurance Australia Ltd (ASX: GMA)
According to Weick, Genworth is the biggest player in the lenders’ mortgage insurance market in Australia.
“It’s a buy. It’s experiencing very strong tailwinds as a result of the growth in the housing market,” he said.
“It provides strong leverage to rebounding interest rates for earnings.”
Shares of Genworth are up 13.7% year-to-date, trading at $2.82 when the market closed Tuesday.
Weick said the company was in a similar position to the big banks, with excess capital built up during the COVID-19 crisis last year.
“You’re going to see significant capital reserve releases.”
Boral Limited (ASX: BLD)
Equity analyst Anna Milne rated the construction materials business as a buy.
“Management is highly incentivised to pull off the transformation program that is ongoing,” she said.
“There is a buyback in place and a lot of catalysts on the horizon in terms of divestments.”
Boral stocks have risen more than 36% this year and closed at $6.79 on Tuesday. They were as low as $3.01 in the depths of the COVID-19 market crash in March last year.
Dusk Group Ltd (ASX: DSK)
Koch rated the candle and diffuser retailer as a “strong buy”.
“We really like it here because we see multi years of earnings growth ahead of it.”
Dusk only listed on the ASX in November, and since then has seen its share price shoot up more than 111%. The stock closed Tuesday at $3.64.
“They’re a hit too with grandmas,” said Weick.
Beston Global Food Company Ltd (ASX: BFC)
Beston stocks have gone nowhere in recent years. They closed at 12 cents on Tuesday, which is the same level as it was back in early 2019.
“A bit of a controversial one. But this is a multi-year turnaround strategy, which is coming to fruition now,” said Weick.
“We think the business is really well-positioned to benefit from the lactoferrin strategy, which we think medium-term can drive significant earnings upside.”
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Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.