…and some to hold, avoid or sell

Capita Investors Chronicle

Turnaround at the support services firm is under way, centring on a plan to ditch non-core businesses and invest in technology. Efficiencies are improving, but the risks still outweigh recovery prospects. Sell. 144p.

Centrica The Mail on Sunday

The British Gas owner has proved a “sorry investment” for many, but there’s “light at the end of the tunnel”. New technology such as smart thermostats could generate £1bn in sales by 2022. Yields over 8%. Hold. 143.65p.

The Times

Convatec has a healthy business selling care products to the NHS and 110 other healthcare operators globally. But shares have been hit by supply issues. It needs to “iron out more problems” to rebuild trust. Avoid. 211.5p.

Greencore Group Investors Chronicle

The food producer has exited desserts and is phasing out “longer life” meals for the “ready” variety. But given poor use of US facilities, and March’s profit warning, there’s little catalyst for a turnaround yet. Sell. 180p.

Investors Chronicle

The educational publisher has enjoyed an “uptick”, boosted by rising profits in its North American and core businesses. But broader market pressures remain and Pearson’s PE ratio looks unjustified. Sell. 954p.

Sage Group The Times

The tech group, best known for its accounting software, is moving from selling licences annually to monthly subscriptions and cloud data storage. Shares have jumped and should reward in the long term. Hold. 646.5p.