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

Three to buy

Gore Street Energy Storage

The Mail on Sunday

The UK is a pioneer in battery storage systems, which allow energy from renewable power sources to be stored and released when needed. Gore Street Energy Storage Fund “is one of the industry’s leading players”. When the company listed in 2018 it had only one site, but today it has 25 facilities with storage capacity of 700MW. Battery storage “is a key component of a secure and renewable energy mix, but it is good business too”: contracts are lengthy and Gore Street’s customers, which include National Grid in the UK and EirGrid in Ireland, are “robust and reliable”. It’s targeting a 7% annual dividend yield and has ample opportunity for growth: the pipeline has a combined capacity of 1,300MW. The fund is raising £75m more at 110p per share and it’s a buy. 113p.

Hays

The Telegraph

Shares of recruiter Hays have lost 18% of their value since the start of 2022 despite record fees for the first half of its current financial year. They are likely to remain volatile due to global economic uncertainty, but Hays has a “solid financial position” with net cash of £237m and net finance costs covered over 13 times. The firm is highly cash generative and paid generous dividends before the pandemic. The current price “offers a relatively wide margin of safety in expectation of more difficult trading conditions”. 120.4p.

The Fulham Shore

Shares

This restaurant group has come out of the pandemic as a “more resilient business” and will also benefit from “the number of competitors which fell by the wayside”. Franco Manca, its sourdough pizza brand, “has gone from strength to strength”, and both that and The Real Greek have “scalable business models” based on good-quality products, strong traffic and attractive prices. The hospitality industry faces many challenges, but this management team is one of the most experienced in the sector. Buy. 16.5p.