…and some to hold, avoid or sell

Flybe Group Investors Chronicle

The low-cost airline has “a lot of work to do to catch up with” peers. It is reducing its fleet size, but the load factor is well behind easyjet and Ryanair, and it has a poor record of punctuality. Sell. 37p.

GKN The Mail on Sunday

The engineering giant issued a profit warning in October. Now the new CEO is quitting, and a review of working capital is expected to result in £80-£130m of write-offs. Broker Panmure Gordon has reduced the target to 230p. Sell. 302.5p.

Investors Chronicle

The depreciation of sterling continues to squeeze the retailer – bike sales fell amid price rises due to the increased cost of US parts. A new CEO arrives in January, but the group remains vulnerable to forex moves. Sell. 314p.

Hikma Pharmaceuticals Investors Chronicle

This unbranded drugs specialist faces an uphill battle thanks to efforts to reduce the price of medication in the US and increasing competition in India. Its generic version of asthma drug Advair has been hit by delays. Sell. 995p.

The Sunday Times

The theme park operator blamed a lacklustre summer on tourists shunning city centre attractions over terrorist fears. While UK consumer confidence is fast eroding, capex is up to £390m, with a debt pile of £1.2bn. Avoid. 377p.

Royal Mail The Times

Royal Mail’s letter business continues to decline, and it faces growing competition for parcel delivery from “nimble” operators including Amazon and DHL. The threat of industrial action remains a cloud. Sell. 395.5p.