Share tips: Wickes, Redrow and more


Updated on 16 September 2021 | 4 Comments

Here's your share tips roundup, where the experts say what they're buying, selling or holding this week.

Redrow, Ascential and Wickes are among the companies under the spotlight this week.

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1. Redrow – BUY

Symbol: RDW.L

Index: FTSE 250

One year share price chart for Redrow. (Image: Google Finance)

The housebuilder currently boasts a record order book of £1.43 billion but has warned that the housing market is beginning to moderate.

Marcus Cole, an analyst at Liberum, says Redrow is one of the top picks in the sector, given its growth potential and attractive valuation.

“We expect the shares to re-rate as the positive news flow in the sector trumps investor fears,” said Cole.

2. Ascential – HOLD

Symbol: ASCL.L

Index: FTSE 250

One year share price chart for Ascential. (Image: Google Finance)

The information and data group are expected to have raised £216.8 million from the sale of some of its assets and £148 million from a placing.

Malcolm Morgan, an analyst at Peel Hunt, sees an opportunity for Ascential to outpace its competitors and satisfy rising consumer demand by accelerating its mergers and acquisitions.

“We expect our valuation to be a staging post, as the company uses the additional funds raised and the borrowing headroom that we now forecast to make further acquisitions,” he said.

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3. Wickes – BUY

Symbol: WIX.L

Index: FTSE 250

The DIY retailer, which recently demerged from Travis Perkins, has produced a strong set of results for the half year to the end of June 2021.

According to Wayne Brown, an analyst at Liberum, the strong first half results, ongoing trading, and the delivery of upgrades in the current environment is impressive.

“It reflects Wickes’ well-balanced, digitally-led, market-leading customer proposition supported by what we see as long-term structural tailwinds,” commented Brown.

4. IG Group – ADD

Symbol: IGG.L

Index: FTSE 250

One year share price chart for IG Group. (Image: Google Finance)

IG Group’s first quarter trading update has revealed it enjoyed a good start to the year.

According to Stuart Duncan, an analyst at Peel Hunt, active client numbers remain high, and support future sales expectations.

“After recent share price weakness, we expect the shares to bounce on this news,” he said.

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5. Superdry – BUY

Symbol: SDRY.L

Index: FTSE All-Share

One year share price chart for Superdry. (Image: Google Finance)

Superdry has delivered better-than-expected results, which showed its business recovery was on track in the wake of the coronavirus pandemic.

The pandemic allowed the group to sharpen the strategy and strengthen its team with key appointments, as well as improve marketing, according to Brown.

“We think the share price weakness (of) the last few months will reverse and Superdry remains one of our top picks,” commented Brown.

The information included in this article does not constitute regulated financial advice. You should seek out 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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