Expert share tips this week

Here’s your round up of how the experts view key stocks this week.

Marston’s, B&M and are among the companies under the spotlight this week.

1. Marston’s – BUY

Symbol: MARS.L

Index: FTSE All-Share

Marston's share price (Image: Google)

The brewing and pub retail company enjoyed a boost from the World Cup and warm summer for drinks, with sales growth of 3.2% for the year ended 29 September 2018.

However, Graham Spooner, investment research analyst at The Share Centre, said its food operations didn’t fare as well with customers preferring to eat at home.

“We maintain our ‘buy' recommendation due to the group's continued expansion and progressive dividend policy,” he said.

2. Ferguson – BUY

Symbol: FERG.L

Index: FTSE 100

Ferguson share price (Image: Google)

Shares in the distributor of plumbing and heating materials are down 13% as investors focus on perceived risks to the US construction cycle.

However, Charlie Campbell, an analyst at Liberum, believes current activity levels and prospects look positive for residential and non-residential segments.

 “We re-iterate our ‘buy’ rating as the shares’ valuation looks very compelling given Ferguson’s (US) market-leading position and strong track record of market share gains,” he said.

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3. B&M – BUY

Symbol: BME.L

Index: FTSE 250

B&M share price (Image: Google)

The discount retailer, which has more than 575 UK stores, looks to be in good shape with its Heron Foods acquisition and its German arm also performing well.

Adam Tomlinson, an analyst at Liberum, said the shares had de-rated 17% over the past year, despite strong earnings momentum.

“B&M offers exposure to a self-funded, integrated, high growth and cash generative business,” he added.

4. – BUY

Symbol: MONY.L

Index: FTSE 250 share price (Image: Google)

The price comparison website has delivered a healthy Q3 statement with growth across the business, with the Group benefitting from its diversified portfolio.

Malcolm Morgan, an analyst at Peel Hunt, said the consumer offering was evolving but the market wasn’t giving the company credit for the potential benefits.

“We see the valuation as increasingly compelling and happily reaffirm the ‘buy’ recommendation,” he added.

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5. Smurfit Kappa – HOLD

Symbol: SKG.L

Index: FTSE 100

Smurfit Kappa share price (Image: London Stock Exchange)

The provider of paper-based packaging has benefited from increased demand for corrugated cardboard due to the rise of online shopping.

Graham Spooner, investment research analyst at The Share Centre, pointed out it had also rejected an unsolicited bid offer from US giant International Paper.

“Although the group has continued to make gains and is likely to remain on the acquisition trail, this is likely to increase its debt load,” he said. “The shares are no better than a ‘hold’.”

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.

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