…and some to hold, avoid or sell

BHP Group

The Daily Telegraph

The Anglo-Australian miner benefits from the “profitability of its world-class iron ore operations” and generates “significant” cash. Demand from China is slowing, which is a risk, but it yields 6%. Hold. £18.16.

Card Factory

Investors Chronicle

Faced with rising costs, declining footfall, persistent sales decline and rising cost inflation, the greetings card retailer has delivered a profit warning, suspended the special dividend and is reviewing the basic pay-out. Sell. 96.3p.

Derwent London

The Times

Rental income is up and vacancies are low at this high-quality commercial property developer focused on the West End, Shoreditch and Paddington. But after a strong post-election run, shares are richly valued. Avoid. £41.86.

SIG

Investors Chronicle

The roofing and insulation specialist’s sales decline is accelerating and margins are wafer-thin. Brokers have slashed forecasts following a second profit warning and recovery hopes look overoptimistic. Sell. 97.6p.

Smiths Group

The Sunday Telegraph

Smiths’ products include airport x-ray machines, mechanical pipeline seals and hoses – all markets with high barriers to entry. It’s spinning off its medical division to boost “slowly” improving performance. Hold. £17.42.

Whitbread

The Times

The Premier Inn operator is planning 3,000 new UK rooms, and 2,000 more in Germany. But a frail economy means that positive food and drink sales haven’t offset falling hotel bookings . Avoid. £44.29.