Weekly share tips: EasyJet, Pearson and more

Weekly share tips: EasyJet, Pearson and more

Here's your latest share tips roundup where the experts reveal which companies they're buying, selling or holding this week.

Rob Griffin

Investing and pensions

Rob Griffin
Updated on 22 September 2023

EasyJet, Pearson and Gleeson are among the companies under the spotlight this week.

1. EasyJet – BUY

Symbol: EZJ.L

Index: FTSE 250

Eayjet share price (Image: Google)

The low-cost airline expects full-year 2024 capacity to increase at least 10%, with growth targeted at the most profitable routes.

Alexander Paterson, an analyst at Peel Hunt, expects the recent oil price increase to mitigate possibly robust trading but has still reiterated his ‘buy’ recommendation.

“We see the enhanced revenue management, fleet upgauging and tight industry capacity as very positive for the next four to five years,” he said.

2. Pearson – HOLD

Symbol: PSON.L

Index: FTSE 100

Pearson share price (Image: Google)

The publishing group has announced chief executive Andy Bird is stepping down and will be replaced by Omar Abbosh.

The news will surprise many investors given Bird’s relatively short tenure of less than three years, pointed out Roddy Davidson, research analyst at Shore Capital.

“Our core view on PSON is positive as we believe that it is well placed to capitalise on medium-term growth in a global learning spend across a variety of sectors,” he said.

3. M&C Saatchi – BUY

Symbol: SAA.L

Index: FTSE AIM All-Share

M&C Saatchi share price (Image: Google)

The international communications company revealed that market growth slowed significantly in the first half of 2023, with clients generally spending less.

However, the good news is that executive chair Zillah Byng-Thorne is “likely making a positive difference”, according to Andrew Ripper, an analyst at Liberum.

“The benefit of cost actions is building, margin should recover strongly from the second half and a lot of bad news is in the share price,” he said.

4. Gleeson – BUY

Symbol: GLEG.L

Index: FTSE All-Share

Gleeson share price (Image: Yahoo! Finance)

The building developer delivered pre-tax profits of £31.5m, which were 5% ahead of expectations.

Sam Cullen, an analyst at Peel Hunt, believes the company is well-placed to deliver significant volume growth when markets stabilise and start to recover.

“The group offers a differentiated product, supplying much-needed low-cost homes in areas of limited competition,” he said.

5. Frontier Developments – SELL

Symbol: FDEV.L

Index: FTSE AIM All-Share

Frontier Developments share price (Image: Google)

The British video game developer, whose franchises include Planet Zoo, has painted a lacklustre growth picture, with continued headwinds.

Katie Cousins, research analyst at Shore Capital, has downgraded her forecasts and would need to see a “significant positive performance” to change her opinion.

“We were disappointed to see the latest F1 Manager game underperform and have concerns about the group’s ability to recover lost sales elsewhere in the portfolio,” she 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.

*This article contains affiliate links, which means we may receive a commission on any sales of products or services we write about. This article was written completely independently.

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