Company Interview / Morningstar's reporting season report card

Lochlan Halloway from Morningstar says the recent reporting season delivers mixed results. He explains that while a third of covered companies see upgrades, 15% are downgraded. News Corp (ASX:NWS) and QBE (ASX:QBE) benefit from significant fair value upgrades due to positive business developments

Lochlan highlights significant downgrades for Platinum Asset Management (ASX:PTM) and Sealink (ASX:KLS) , citing high-profile staff departures and underperforming acquisitions, respectively. He notes that while fundamentals remain steady, market expectations are not always met, as evidenced by investor reactions

He examines supermarkets Coles (ASX:COL) and Woolworths (ASX:WOW), finding both modestly overvalued, with Coles having gained market share. Lochlan notes the market remains expensive, especially large caps, trading at a 15% premium even after corrections. Overall, he perceives the market as pricey but not unprecedented.