The Point for Australia/NZ

Research evidence excerpt

The Point for Australia/NZ

Australia Gas Pipelines & Distribution Utilities - Data centers driving gas

pipeline M&A and increased investor/producer attention, positive for Buy-rated

APA

Rising M&A activity in Australian gas pipeline infrastructure signals meaningful

valuation upside for Buy-rated APA Group. Morgan Stanley's acquisition of Epic

Energy from QIC for A$1 billion — implying a ~14.5x FY25 EV/EBITDA multiple — is

a ~10% premium to APA's current ~13x FY25 EV/EBITDA, underscoring that the

market is mispricing APA's asset quality, in our view. Compounding the bullish

case, Beetaloo Energy's planned 2GW gas-backed data centre complex near

Darwin highlights the emerging role of gas infrastructure in powering Australia's

digital economy — a structural demand tailwind mirroring trends already well-

established in the US. We maintain a non-consensus Buy on APA, with positive

momentum heading into August results.

Suraj Nebhani, CFA | Howard Penny | Akshit Batra

Global

US Economics - The Daily Update - Can the Fed surprise us?

We expect the Fed to hold policy rates steady. A surprise hike would be oddly

timed following softer core CPI and inflation breakevens reflecting expectations

for subdued inflation.

Andrew Hollenhorst | Veronica Clark

Measuring the Crowded Trade in Global Equities - Technology remains among

top crowded sectors globally

Despite the unwind in the Technology and AI-related trade this month, the

Technology sector remains among the top three crowded sectors globally, ex-

Australia where it’s ranked last among sectors. Within US Technology, crowding in

Semis declined but remains elevated while Software and Services is at YTD lows.

The re-escalation of the US/Iran conflict had pushed WTI oil up nearly 30%