…and some to hold, avoid or sell

Amazon Investors’ Chronicle

Amazon Web Services has maintained its market-leading position in cloud services amid mounting competition. But tight retail margins and a jump in operating costs (shipping and wages) could hurt the wider business. Sell. $3,159.

JD Sports Fashion The Daily Telegraph

Surging inflation in the UK, US and Europe threatens discretionary spending – and the retailer faces further headwinds from rising staff costs and disrupted supply chains. Shares have doubled since 2017: take profits. Sell. 179.05p.

Micro Focus International Investors’ Chronicle

The software and consultancy firm is still struggling with its “disastrous” acquisition of Hewlett Packard’s software arm. Debt is high and profits down, but cash generation is improving and shares trade at a 36% discount. Hold. 453.3p.

Novacyt The Times

Demand for lucrative PCR contracts is set to fall drastically this year, yet detail on the diagnostics group’s non-Covid products is thin. Numis has cut revenue forecasts by more than a third. Avoid. 160.95p.

Ocado Group

The Sunday Telegraph

Shares have collapsed in line with the abating appetite for online-focused stocks. Yet Ocado’s £1.5bn cash pile bodes well for tech and investment. Partnership deals in the US, Japan and Europe are promising. Hold. £12.94.

Restore

The Daily Telegraph

Recovery is well under way at the document manager, thanks to eight acquisitions in 2021 and improving organic momentum. The return to the office should boost its relocation and recycling divisions. Hold. 468.5p.