Investing.com -- Jefferies has identified five preferred stocks in the technology, media and telecommunications sector following the August 2026 reporting season, focusing on companies with strong balance sheets and pricing power amid uncertain economic conditions.
The investment firm selected Carsales.com (), REA Group (), Megaport (), Infratil (), and Life360 () as its key picks. Jefferies said MP1 and 360 have been oversold, presenting a buying opportunity.
Carsales.com received a buy rating with a price target of $33.50. The firm said selling pressure from MSCI index removal has ended. In Australia, the company can still exercise pricing power due to healthy dealer profitability. The US division is now highly diversified and can generate growth regardless of economic conditions. In Brazil, competitor iCarros is undergoing an ownership change, providing an opportunity for Webmotors to gain market share. The stock trades at 22 times price-to-earnings ratio.
REA Group has a buy rating with a price target of $195.00. Jefferies said the company can generate double-digit yield growth despite a challenging housing market. The Luxe add-on is outperforming expectations and property sellers are unlikely to downgrade their listings because REA delivers better leads than Domain. The stock trades near its price-to-earnings ratio bottom from 2019.
Megaport received a buy rating with a price target of $26.00. Demand for compute and storage remains strong, while GPU rental prices are rising. Jefferies views Nvidia’s decision to pause support to neocloud startups as positive for MP1. The company has sufficient liquidity to fund committed capital expenditure in fiscal 2027, with an additional $500 million in headroom. The core network business shows organic annual recurring revenue growth of 24% year-over-year.
Infratil has a buy rating with a price target of NZ$17.70. The stock trades at a 20% discount to net asset value. CDC, representing 49% of Infratil’s valuation, has more than 800 megawatts coming online by fiscal 2029 and a further 2.6 gigawatts pipeline. One NZ represents 15% of valuation and remains cash-generative.
Life360 received a buy rating with price targets of $61.00 for US shares and $29.00 for Australian shares. Jefferies expects the fourth quarter to be stronger, driven by advertising, monthly active user growth, and price increases. Sensor Tower data for August shows continued growth in monthly active users.
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