…and some to hold, avoid or sell

Berkeley Group Shares

Housebuilders are “sitting ducks” for a shock if rising interest rates drive up mortgage rates. Rising building costs don’t help, and Berkeley is vulnerable due to its focus on the high-end London market. Sell. £38.20

DFS Furniture Investors Chronicle

The sofa retailer is suffering a “retail horror show”, with wavering consumer confidence leading to almost static sales growth. Given the pressure on profitability, the investment needed to sew-in acquired firms is worrying. Sell. 216.5p.

Lonmin Investors Chronicle

The embattled miner’s lenders have agreed a waiver on two key covenants. But “the stark realities” are that Lonmin is in “survival mode”, with high operating costs and subdued prospects for platinum. Sell. 86p.

Next Sharecast

Morgan Stanley has downgraded the retailer on fears that, despite decent profits, the “Next customer proposition may be losing resonance with UK consumers” as core Next Directory sales deteriorate. Sell. £51.15.

Royal Mail Investors Chronicle

Industrial action will amplify Royal Mail’s existing woes. Letter volumes are declining, it has fallen from the FTSE 100 and the dividend is vulnerable. Rival parcel services, such as Parcelhero, will benefit from a strike. Sell. 371p.

XP Power The Times

XP makes “unexciting but essential” power controls for a wide range of industries, and performance is now far exceeding expectations. Shares have come a long way and are highly rated. Take profits. Sell. 30.99.