Latest share tips: WH Smith, Reach & more
Here's your roundup of the latest share tips. See which companies the experts are buying, selling or holding this week.
WH Smith, Reach and Pets at Home are among the companies under the spotlight this week.
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WH Smith – ADD
Symbol: SMWH.L
Index: FTSE 250
Could this famous name be disappearing from the high street? The company is conducting a strategic review of this part of the business, which could see it sold to a private equity player.
Management wants to give all stakeholders greater focus on the travel side of the group, according to Jonathan Pritchard, an analyst at Peel Hunt.
“The headwinds in UK retail are well known and the list of interested parties is likely short,” he added.
Reach – BUY
Symbol: RCH.L
Index: FTSE All-Share
The publisher expects full-year results to be ahead of expectations due to strong trading during the fourth quarter.
It has an excellent record for achieving or exceeding cost guidance, according to Johnathan Barrett, an analyst at Panmure Liberum.
“The company had already flagged it was doing well in its last update and so we expect it to have outperformed for the full year and build in just over £2 million extra savings,” he said.
Ready to invest but want to shield your returns from the taxman? Open a Stocks & Shares ISA with Hargreaves Lansdown now
Pets at Home – BUY
Symbol: PETS.L
Index: FTSE 250
The retailer is believed to have suffered along with the entire sector over the past couple of months but prospects are looking brighter.
A poor November overshadowed a solid enough Christmas period, according to Jonathan Pritchard, an analyst at Peel Hunt.
“We believe the recent share price weakness is overdone,” he said. “In our view, the shares offer an attractive entry point.”
Gamma Communications – BUY
Symbol: GAMA.L
Index: FTSE AIM UK 50 Index
Shares in the provider of tech-based communication services have been weak due to concerns over the price paid for Starface, the German software business.
However, Harvey Robinson, an analyst at Panmure Liberum, believes investors need to consider other benefits such as cost synergies.
“We continue to like the growth, the cash generation and the valuation of the business,” he said. “We reiterate our ‘buy’ rating and 1700p target price.”
Dr Martens – HOLD
Symbol: DOCS.L
Index: FTSE 250
The iconic shoe manufacturer has delivered a fairly solid quarter that is seen as providing a platform for future recovery.
John Stevenson, an analyst at Peel Hunt, is broadly optimistic and has reiterated his ‘hold’ rating, with a target price of 70p.
“Momentum is turning as the group passes through its nadir, but we believe there is still a way to go,” he said.
Ready to invest but want to shield your returns from the taxman? Open a Stocks & Shares ISA with Hargreaves Lansdown now
The information included in this article does not constitute regulated financial advice. You should seek independent, professional financial advice before making any investment decision.
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