Here’s your weekly round up of how the experts view key stocks.
Rio Tinto - SELL
Symbol: RIO.L
Index: FTSE 100
The mining giant is likely to be affected by China, according to Richard Knights, an analyst with Liberum.
He points out that supply side reform in the country was a major driver of the mining sector last year, while speculation that it could spread to the aluminium sector helped push up prices 7%.
“However, the proposed reforms are unlikely to have a material positive influence on prices given they will offset only a third of capacity growth this year, meanwhile apparent consumption has nudged only marginally up,” he said.
Rentokil Initial - BUY
Symbol: RTO.L
Index: FTSE 250
Rentokil has been spending again. It has just announced the acquisition of Allgood Pest Solutions, a pest control company headquartered in Atlanta, Georgia – meaning it has now bought five businesses in the current year.
This comes on the back of a busy 2016 during which it acquired 41 new businesses, points out analyst Christopher Bamberry of Peel Hunt. “The latest acquisition is designed to build scale and customer density in the states of Georgia and Tennessee, where the warmer climate means a higher pest density,” he said.
GlaxoSmithKline - BUY
Symbol: GSK.L
Index: FTSE 100
A giant of the drugs industry is worthy of consideration by investors searching for income because it's fairly defensive and offers a decent yield, according to Ian Forrest at The Share Centre.
“The strength of its R&D pipeline, in which it has invested heavily, is another big attraction,” he said. “There are a number of positives and this makes it a core holding for a lot of investors in the sector.”
Howden Joinery Group - BUY
Symbol: HWDN.L
Index: FTSE 250
The parent company of Howdens Joinery, the leading UK supplier of kitchens, has seen its shares down around 22% since the EU referendum last year – but analyst Charlie Campbell at Liberum is positive on its prospects.
“We think investors are overdoing fears around volumes, costs, operational gearing and the roll-out, ignoring management driven resilience of the past,” he said. “Its competitive strengths are also unlikely to fade.”
Taylor Wimpey - HOLD
Symbol: TW.L
Index: FTSE 100
The housebuilding sector has also experienced plenty of volatility in the wake of the EU referendum because it causes so much uncertainty. As a result, Taylor Wimpey has suffered unduly, according to Ian Forrest at The Share Centre.
“The company is well managed, has a good cash position and has been returning capital to investors,” he said. “Its Spanish business also remains strong so there are a lot of positive fundamental factors.”
The information included in this article does not constitute regulated financial advice. You should seek out independent, professional financial advice before making an investment decision.