Next, Bellway and JD Wetherspoon are among the companies under the spotlight this week.
Next – BUY
Symbol: NXT.L
Index: FTSE 100
The retailer’s investment in distribution and technology platforms is providing meaningful cost savings and improvements in customer service.
John Stevenson, an analyst at Peel Hunt, is optimistic about its prospects and has a ‘buy’ recommendation in place on the stock.
“With eyes on a recovering consumer environment into autumn, we believe Next is well placed to outperform,” he said.
Softcat – HOLD
Symbol: SCT.L
Index: FTSE 250
The IT infrastructure provider offers investors exposure to a broad range of technology vendors, many of which are expected to benefit from artificial intelligence.
According to Andrew Ripper, an analyst at Liberum, the company should deliver an acceleration in growth from the second half of this year.
“We expect Softcat to continue to return surplus capital in the short term but the group may acquire to internationalise over the medium term,” he said.
Bellway – HOLD
Symbol: BWY.L
Index: FTSE 250
The housebuilder’s first-half results were sharply lower with revenue down 30% on 28% less completions.
However, the group has seen a 21% pick-up in the private sales rate since the start of the second half of the year, according to Sam Cullen, an analyst at Peel Hunt.
“The shares have been relatively quiet in the last three months and are 4% higher than the start of the year,” he said.
Big Technologies – BUY
Symbol: BIG.L
Index: FTSE AIM UK 50 Index
The surveillance software company has reported full-year 2023 results that were in line with expectations.
Investor confidence has taken a knock with negative recent news on bids, but Andrew Ripper, an analyst at Liberum, remains optimistic.
“Our view is that the medium-to-long opportunity remains attractive and that BIG should return to growth from the full year 2025,” he said.
JD Wetherspoon – ADD
Symbol: JDW.L
Index: FTSE 250
The pub chain, which has seen a 9.9% uplift in first half like-for-like sales compared to 2023, has opened two sites and sold or surrendered 13 to the landlord.
This has resulted in a cash inflow of £3.8m, according to Douglas Jack, an analyst at Peel Hunt, who has an ‘Add’ recommendation on the stock.
“Trading has been as good as one could expect, but the shares are no longer a bargain,” he said.
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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