Future, WPP and Topps Tiles are among the companies under the spotlight this week.
Future – BUY
Symbol: FUTR.L
Index: FTSE 250
The media group has seen a return to organic review growth in the second quarter of 2024, following continued revenue improvement.
This performance has been led by B2B, Go.Compare and its resilient magazines, according to Jessica Pok, an analyst at Peel Hunt.
“The shares continue to look very cheap in our opinion, and the continued stabilisation of audience trends should be a reassurance to investors today,” she said.
WPP – BUY
Symbol: WPP.L
Index: FTSE 100
The communications business is expected to publish a trading update on Thursday (25 April) that should give an insight into recent developments.
Roddy Davidson, a research analyst at Shore Capital, will be looking to hear about the impact of macro factors on advertising spend and the management’s transformation programme.
“We are particularly interested in learning more about WPP’s proactive and increasingly evangelical attitude towards the implementation of AI,” he said.
Savills – ADD
Symbol: SVS.L
Index: FTSE 250
The property advisor is expected to enjoy a modest recovery in profitability, even though the rest of 2024 is likely to be tricky.
Clyde Lewis, an analyst at Peel Hunt, believes its healthy balance sheet will enable it to continue expanding within existing and new geographies.
“We continue to like the story, but at current levels, we rate the shares as an add,” he said.
Topps Tiles – HOLD
Symbol: TPT.L
Index: FTSE All-Share
The tile specialist has suffered from fewer homeowners looking to maintain and improve their properties in recent weeks.
Adam Tomlinson, an analyst at Liberum, has been a long-term buyer of the stock and likes its leading UK market position and attractive balance sheet.
“However, it is difficult to see what drives the share price higher at this stage,” he said.
Luceco – ADD
Symbol: LUCE.L
Index: FTSE All-Share
The short-term earnings outlook for the provider of electrical accessories is expected to depend on a potential pick-up in the home improvement area.
However, Andrew Shepherd-Barron, an analyst at Peel Hunt, believes the company’s market position is secure, with a strong product portfolio.
“We expect a gradual improvement to become visible in Luceco’s revenues by the second half of 2024, and now expect adjusted pre-tax profits of £23.4m in the full year,” 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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