Raymond Chan, head of research at Morgans, joined Switzer Investing TV this week and gave his verdict on a handful of market movers. Here’s where he’s seeing value, what’s on his “wait and see” list, and the stocks that might need a little more patience.

Just remember, this isn’t financial advice—do your own homework and talk to a pro before acting on anything here.

The Buy List

CSL (CSL)

Chan is unambiguously positive on CSL, viewing the current price as an opportunity with limited downside. He points to strength in plasma-based medicines and a discount valuation versus history:

“I think we have a buy, on CSL. I think at the current level, the downside risks, limited… The key part is now the plasma-driven drugs division, which is almost 70% of the total revenue that we think will continue to grow, quite well… At the moment, they are trading at a P/E which is at a discount to the long-term average. We don’t think there’s too much of the downside risk for CSL at this stage. So for us it’s a buy.”

While the vaccine division faces some challenges, Chan believes the core business is strong and that current levels represent good value.

Goodman Group (GMG)

A familiar favourite, Goodman gets Chan’s endorsement—especially on recent share price weakness. He sees the company’s low gearing as a buffer against volatility:

“Goodman I actually like this name at the current price… Goodman on the headline, the gearing is very low… Also, the stock’s has meaningfully pulled back from its recent high… I think what we need for Goodman is in the next set of update is they start to upgrade the outlook a little bit, and the market will start to love Goodman again. So I think the current pullback will likely be a buying opportunity for Goodman especially is below $30.”

Pro Medicus (PME)

While he prefers to buy PME on further weakness, Chan is fundamentally positive and highlights the company’s market position and contract “stickiness”:

“We a[n]alyst always like this company… the growth, suddenly, meaningfully. And in the US, they have a market share… those contracts are very sticky. That’s what we like… We like this company that, you know, it is suddenly, worth look at, you know, if there’s price weakness on Pro Medicus, in the current market.”

For Chan, Pro Medicus remains a top pick if you can get it a little cheaper.

The ‘Maybe’ List

Sometimes, great companies just need a little more time—or a little more clarity. Here’s where Chan isn’t rushing in, but isn’t closing the door either.

NEXTDC (NXT)

Chan isn’t ready to call NXT a buy at current levels, citing valuation and sector sentiment:

“NextDC… at the current price, they suddenly [are] not cheap… the company [has] a strong track record… Now… they’re partnering with capital partner to develop the offshore area such as Japan… if the sentiment move[s] toward data centre again… we may see a bounce… but at the moment, NextDC is likely to trade sideways before a more clear direction… So it’s not a screaming buy at the moment, but further weakness likely to create opportunity.”

Chan sees NXT as a watchlist name unless there’s a price pullback.

Xero (XRO)

While growth investors might find Xero appealing, Chan is cautious about the near-term outlook due to its US expansion and ongoing cash burn:

“Xero is a little bit interesting… Xero is a growth company. When they make the acquisition… with aim to expand into… the US market… it will probably would take some time before Xero can deliver to the long term plan, which I think is important for them. For us, I think at this stage, we’ll have a hold recommendation on Xero.”

For Chan, the thesis is long-term but requires patience and a strong stomach for volatility.

Life360 (360)

No formal coverage, but Chan shared an anecdote and seemed open to the company’s growth prospects, referencing the product’s “playoff certainty” for families:

“Life360… we don’t have coverage on the company, but my dog is using it. We use it to track where he’s going… We think this a playoff certainty.”

While not an outright buy, there’s a nod of approval to the product’s value and potential.