The week’s best buys

Cairn Energy The Times

The oil and gas explorer has a “clear road map” for increasing production over the next five years. A $1.6bn tax dispute, which has been hanging over Cairn since 2014, is set to clear and a special windfall from the arbitration would be an added boost. Buy. 233p.

Computacenter Investors Chronicle

The corporate IT services stalwart is enjoying strong revenue growth and excellent cash generation. Returns are generous and momentum should continue. Buy. £13.76.

Investors Chronicle

This sustainable investment specialist has a record of beating market expectations. Having gained £1bn in net inflows, the acquisition of Us-based Pax World earlier this year added another £2bn. Continuing momentum. Buy. 207.5p.

Rentokil Initial The Mail on Sunday

Rentokil has reshaped its business faster than anticipated to focus on its higher-margin pest control division. HSBC has upped the target price to 440p. Buy. 350.2p.

The Sunday Times

The power drill supplier has rationalised stock lines and is expanding its services arm. Debt is down and infrastructure projects, such as the Thames Tideway Tunnel, will cushion it in a downturn. Buy. 62.2p.

Ted Baker The Times

Despite a “sluggish” first half, the fashion brand continues to outperform, driven by its storming online business. As well as the retail side, there’s a growing wholesale and licensing arm. Buy. £23.46.