For stocks within Morgans coverage of general industrials on the ASX, the broker expects weaker operating conditions experienced in the 2H of FY23 will likely persist through FY24.

In an AGM season preview, the analyst states preferred stocks, increases its risk-free rate assumption to 4.2% from 3.6% and makes relatively muted earnings/target changes.

Morgans key picks are the Add-rated Qualitas, Ventia Services and Maas Group.

Despite the market's elevated valuation multiple for Qualitas, the broker believes this is supported by recurring income growthand the potential within the build-to-rent portfolio.The target rises to $3.25 from $3.20.

Sector: Real Estate.

Target price is $3.25.Current Price is $2.34. Difference: $0.91 - (brackets indicate current price is over target). If QAL meets the Morgans target it will return approximately 28% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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