Who’s tipping what: the week’s best buys… …and some to sell
Halma Shares
Halma manufactures a wide range of health and safety products. Organic growth is being supplemented by acquisitions, and its margins consistently beat peers’. An unrivalled record of dividend growth. Buy. 955.5p.
M.P. Evans Group Investors Chronicle
The palm oil producer has only one remaining minority investment to sell (which could mean a special payout) and will then be in full control of its acreage. Oil prices are rising and there’s a buyer circling. Buy. 719p.
Parity The Daily Telegraph
The recruitment specialist’s higher-margin consultancy arm is targeting a potentially lucrative niche in the utilities sector. Parity is a high-risk play, but a management shake-up could trigger a turning point. Buy. 9.38p.
Primary Health Properties The Times
PHP buys NHS properties and pharmacies and then rents them back to the tenants. Debt is down and there’s capital to fund further portfolio growth, including an Irish expansion. Yields 4.9% – a “perfect income stock”. Buy. 107.5p.
Qinetiq Group The Times
Q3 results show that trading and margins at the defence group are holding up despite pressure from the UK regulator. North America is recovering from a decline in robotics orders, which is a boon. Good value. Buy. 277p.
Rolls-royce Holdings The Times
The aeronautical engineer has suffered tough times. But Rolls has shaved £60m off costs, and streamlined management. Engine orders look healthy and there are plans to double production by 2020. Buy. 666p.
Severn Trent The Daily Telegraph
The water industry “keeps churning out good news”, to the benefit of Severn Trent, whose shares “continue to grind slowly higher”. Q3 results were solid, and the 3.5% yield is well covered, with scope to grow. Buy. £22.90.
Smith & Nephew Investors Chronicle
The medical devices firm has suffered several years of falling profits and earnings. But there is strong US demand for sports medicine products, and shares are good value for a global market leader. Buy. £11.53.
Treatt Shares
Treatt makes ingredients for the flavour, fragrance and personal care industries, and is riding the demand for healthy, natural low-sugar drinks. Geographically diverse, with falling debt and improving margins. Buy. 258.93p.
CYBG The Mail on Sunday
In its overview of “challenger” banks, Panmure Gordon claims the combined Clydesdale/ Yorkshire outfit is too reminiscent of the large banks. Low growth, low returns and consistent restructuring costs are all problems. Sell. 274.5p.
Nex Group The Times
Nex (formerly Icap) has made hay from the “Trump boom”: uncertainty has boosted trade on its interest rate and currency derivatives platforms. But earnings visibility isn’t clear: take profits. Sell. 551.5p.
St Ives Shares
The printer and digital marketing services firm has been hit by cancelled contracts and has issued its third profit warning in a year. Exposure to the groceries sector doesn’t help. The dividend is vulnerable. Sell. 59p.