Expert share tips this week: BP, Shell, Cineworld & more

Here’s your latest round up of how the experts view key shares.

BP, Shell and Cineworld are among the latest companies under the share dealers spotlight.

Don't run out of cash in retirement: reader Fisher Investment's guide to retiring comfortably

1. BP – BUY

Symbol: BP.L

Index: FTSE 100

BP share price (Image: Google)

The oil giant surprised the market by announcing the sale of its petrochemicals business to  INEOS for $5bn.

The Covid-19 pandemic has led many oil majors to reduce costs and capital expenditure, points out Ian Forrest, investment research analyst at The Share Centre.

“While this deal is a good one and should help the company to reduce its relatively large debts, the news needs to be seen alongside the company’s recent reduction in its long-term expectations for the price of Brent crude,” he says.

2. B&M European Value Retail – BUY

Symbol: BME.L

Index: FTSE 250

B&M share price (Image: Google)

The discount retailer has enjoyed increased like-for-like sales over the last five weeks as shoppers looking for bargains.

There’s a lot to like about the stock and although shares have enjoyed a decent run, forecasts continue to rise, according to Jonathan Pritchard, an analyst at Peel Hunt.

“B&M’s growth characteristics mean that its cash generation is sometimes overlooked, but this should be on income funds’ radars as well,” he says.

 

Don't run out of cash in retirement: reader Fisher Investment's guide to retiring comfortably

3. J Sainsbury – HOLD

Symbol: SBRY.L

Index: FTSE 100

Sainsbury's share price (Image: Google)

The supermarket chain reported robust growth for the first quarter with like-for-like retail sales up 8.2% - boosted by a strong performances in e-commerce and grocery.

However, these results were always going to be higher due to the good weather and consumers purchasing bigger baskets, warns Joe Healey, investment research analyst at The Share Centre.

“It is prudent to see management are not expecting this sales growth to continue considering the uncertainty we still have surrounding consumer spending and something which investors should bear in mind,” he says.

4. Cineworld – BUY

Symbol: CINE.L

Index: FTSE 250

Cineworld share price (Image: Google)

The cinema chain will begin to open US and UK cinemas from the end of this month, with a range of health and safety measures in place.

Cineworld is an interesting share to follow, with material debt, a legal challenge from Cineplex and challenges to the business model, points out Ivor Jones, an analyst at Peel Hunt.

“We believe there is sufficient share price upside for us to retain our ‘Buy’ recommendation,” he says.

 

Don't run out of cash in retirement: reader Fisher Investment's guide to retiring comfortably

5. Royal Dutch Shell – BUY

Symbol: RDSB.L

Index: FTSE 100

Shell share price (Image: Google)

The oil giant warned it expects to take a hit of up to $22bn in the second quarter as coronavirus is likely to having a lasting effecting on demand.

This cements the view that dividends will take longer than expected to get back to their pre-crisis level, according to Helal Miah, Investment Research Analyst at The Share Centre.

“Given the circumstances, Shell is on the right and conservative path in managing its assets and capital distributions in the crisis environment,” he says.

These recommendations were correct at the time of first publication but could change at any time. 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.

 

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