Macquarie flags BSL, RWC, REH as top picks for Australian earnings

Macquarie has identified BlueScope Steel (BSL), Redbubble (RWC) and REA Group (REH) as preferred exposures ahead of the upcoming Australian earnings season, citing structural tailwinds and valuation support.

The brokerage upgraded BSL to Outperform from Neutral, citing expectations for continued strength in global steel demand and pricing, supported by infrastructure-led growth in key markets. Analysts noted that BSL’s exposure to high-margin North American operations and its cost-positioning provide resilience amid volatile raw material costs.

Redbubble (RWC) received an Outperform rating, with Macquarie highlighting the company’s scalable marketplace model and improving monetization trends. The brokerage expects RWC to benefit from sustained consumer spending on discretionary goods, particularly in its core U.S. and European markets.

REA Group (REH) was also upgraded to Outperform, driven by expectations of resilient real estate transaction volumes and continued growth in its digital advertising business. Macquarie pointed to REH’s dominant market position in Australia and its ability to capture higher advertising yields as key differentiators.

Macquarie’s recommendations come amid a broader focus on domestic cyclicals and consumer-facing stocks in the Australian market. The brokerage’s outlook is underpinned by expectations of stable domestic economic conditions, though risks remain tied to global growth slowdowns and geopolitical uncertainties.