Jefferies Names Five Top Tech and Telecom Stocks With Pricing Power

Investment firm Jefferies has identified five top stock picks in the technology, media, and telecommunications (TMT) sector following the August 2026 reporting season. The selections favor companies with strong balance sheets and significant pricing power, traits the firm sees as crucial amid ongoing economic uncertainty.

Key Selections and Rationale

In a note to clients, Jefferies highlighted five companies as its key picks, arguing some present a buying opportunity after being oversold by the market. The firm's analysis focuses on businesses with durable competitive advantages and clear growth catalysts.

The selected companies are:

• Carsales.com (ASX:CAR)
• REA Group (ASX:REA)
• Megaport (ASX:MP1)
• Infratil (NZX:IFT)
• Life360 (ASX:360)

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Jefferies analysts noted that both Megaport and Life360 have been oversold, creating an attractive entry point for investors.

A Closer Look at the Picks

Each company was selected based on specific financial and market-based strengths.

• Carsales.com (Buy, PT $33.50): The firm sees continued pricing power in the Australian market and growth from its diversified U.S. operations. Jefferies also pointed to a market share opportunity in Brazil for its Webmotors subsidiary. The stock trades at a 22 times price-to-earnings ratio.
• REA Group (Buy, PT $195.00): Jefferies stated the real estate technology company can generate double-digit yield growth despite a challenging housing market. The report noted its stock is trading near its 2019 price-to-earnings ratio bottom.
• Megaport (Buy, PT $26.00): The network-as-a-service provider is showing strong core business growth, with organic annual recurring revenue up 24% year-over-year. Jefferies views Nvidia's decision to pause support to certain startups as a net positive for Megaport's business.
• Infratil (Buy, PT NZ$17.70): The infrastructure investment company is trading at a 20% discount to its net asset value, according to Jefferies. A primary growth driver is its data center holding, CDC, which has a pipeline of over 800 megawatts coming online by fiscal 2029.
• Life360 (Buy, PT $61.00 US / $29.00 AU): Analysts expect a stronger fourth quarter for the family safety app, citing drivers like advertising revenue, price increases, and growth in monthly active users, which was supported by August data from Sensor Tower.