The week’s best buys

IG Design Group The Daily Telegraph

This greetings card and gift wrap outfit is building international sales thanks to investment in new machinery, which gives greater flexibility, and some acquisitions. “Very efficient”, with net margins of 7%. Buy. 265p.

Meggitt The Sunday Times

The global engineering group has undergone a strategic review: cost-cutting, disposals of non-core divisions and management change are driving up shares, and sales are growing. Ripe for a sale. Buy. 458.3p.

Merlin Entertainments The Times

The theme park operator is expected to return to normal growth. A dramatic investment in rooms will increase the profitability of attractions, and four new Legolands are planned. Buy. 482p.

Sotheby’s The Times

Shares in the auction house soared 15% on the back of recent sales including the Bowie art collection, which raised £32.9m, and major paintings by Willem de Kooning and Gerhard Richter. Not cheap, but set to capitalise on any upturn. Buy. $45.64.

Unite Group Investors Chronicle

Unite provides purpose-built student accommodation, and demand now heavily outweighs supply. Occupancy averages 98%, and rent is growing by about 3.5% annually. Yields more than 4%. Buy. 632.5p.

Vertu Motors The Times

Vertu, which owns 125 UK car dealerships (and the properties they occupy), is taking a cautious view on new car sales. But 70% of the group’s profits come from used cars and after-sales service, and results are “comfortably ahead”. Buy. 49.5p.