WAM: Auto sector warming up after restart
The Australian automotive sector was one of the hardest hit during the depths of the COVID-19 crisis. But with lockdown easing and traffic returning, the outlook is improving. Indeed, AMA Group and Carsales.com have recently had positive trading updates.
Oscar Oberg, Portfolio Manager at Wilson Asset Management, joins the EL&C Baillieu podcast to discuss his positive view on the automotive sector. Oscar explains why the average age of Australian vehicles is increasing and what this means for the sector, and how domestic tourism could provide a boost.
Oscar also identifies his key stock picks in the sector and explains why he likes them:
- AMA Group (AMA) - the vehicle panel repair and accessory provider;
- Bapcor (BAP) - the automotive parts and service business;
- Carsales.com (CAR) - the automotive classifieds company; and
- Tourism Holdings (THL.NZ) – the New Zealand-based RV rental business.
Also tune in to hear Oscar explain why Wilson Asset Management are constructive on the outlook for the Australian equity market. Listen to the podcast below, download from your favourite podcast platform, or read the attached transcript.
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Nicolas Burgess, CFA is a research analyst at EL&C Baillieu Limited, focusing on small and mid-caps including the technology, diversified financials and insurance sectors. He has been an analyst for over 18 years and been at EL&C Baillieu since 2012.