Who’s tipping what: the week’s best buys…
Bellway The Times
Bellway is back on track after the EU referendum. The housebuilder is diversified across the UK, and is focused on increasing its land bank. It has growth potential, healthy 22% margins and yields 4%. Buy. £28.37.
Forterra Shares
The UK’S second-biggest brickmaker looks undervalued, given that strong cash generation has reduced debt. Demand for bricks remains robust, and Forterra has the firepower for bolt-on acquisitions. Buy. 209p.
Halma The Daily Telegraph
Halma provides safety equipment to help companies meet regulatory requirements. Pricing power, high margins, strong cash flow and a growing dividend make this “unexciting” firm a “good long-term bet”. Buy. £9.91.
Hurricane Energy Daily Mail
Shares have surged on news of an oil discovery off the Shetland Islands that is predicted to be a “monster find”. Production is due to start in 2019; shares probably have further to go. Buy. 59p.
Kier Group The Times
Ambitious targets at the property, services and construction group bode well – there’s good forward visibility of work. With Brexit uncertainly looming, Kier can take heart from the fact it gets 95% of its work from the UK. Buy. £15.03.
M&C Saatchi Investors Chronicle
The advertiser has been winning contracts and expanding globally – doubling revenues on the back of acquisitions in the US. Margins have increased; the current rating “doesn’t reflect recent progress”. Buy. 353p.
Sirius Real Estate The Mail on Sunday
Sirius buys cheap business parks in Germany and upgrades them to improve rental income. With rising demand from UK financial, IT and telecoms firms, shares should deliver capital growth and income. Buy. 51.5p.
Smart Metering Systems The Sunday Times
SMS has contracts with eight energy suppliers to install smart meters to help households and businesses control their usage. With only 10% of the Government’s target fitted so far, there should be more to come. Buy. 567.5p.
Softcat The Times
The IT services provider is highly cash-generative and has seen fast growth, scoring a big DWP contract. A huge cash balance will be returned to investors via a special dividend, and the second half has started well. Buy. 368.25p.