MoneyWeek’s comprehensive guide to this week’s share tips

Three to buy

Ashtead Investors’ Chronicle

Industrial-equipment rental company Ashtead has raised its full-year guidance following “an excellent start to the year”. In the six months to 31 October revenue was up by 18% yearon-year. Both its US and UK businesses are reporting strong growth. The company has trimmed operating costs and cut back on discretionary spending, which has strengthened its balance sheet and helped finance ten acquisitions to expand its footprint. 5,954p

Tharisa Shares

Coronavirus-related concerns in South Africa have weighed on platinum and chrome miner Tharisa’s share price, but it “should regain momentum as evidence piles up of its improved cash flow in 2022”. For the 12 months to 30 September the company reported record pre-tax profits of $185.3m, up by 145% year-on-year. Free cash flow grew to over $100m, and the dividend rose by 157%. Its balance sheet was strong at the end of the year, with net cash of $46.6m. Work in the group’s mines is “socially distanced by nature of the operations”, which means that potential virusinduced restrictions should have scant impact. 117p

Schroder European Real Estate Investment Trust The Mail on Sunday

This trust offers investors exposure to “a wide range of commercial properties across Europe… targeting annual dividend yields of 5.5%”. Brexit and the pandemic have weighed heavily on the share price and the discount to net asset value (NAV) is 17.5%. Nevertheless, the company has continued to deliver income to shareholders. Both dividends and the stock should increase as the world recovers from Covid-19. 104p