Lenders Cut Rates

Lenders cut rates and all stock picks are a mix of 78% BUY, 16% SELL and 6% HOLD.

1. HOLD Synthomer

Top performing stock pick this week is HOLD Synthomer by Jefferies with a tip performance of 12%.

Synthomer is a specialty manufacturer of adhesives, foams, acetate and other chemicals. Founded in 1863 as George Yule & Co, Synthomer share price launched at 586p in 1988, it hit an all-time high of 3,897p in 2021 and is today at 156p. It says it has 6,000 customers and employs 4,400 people in Europe, North America and Asia.

Berenberg lowered the target price from 400p to 320p 3 weeks ago after an 80% decline noting that “cyclical stocks with high indebtedness do not put investors at ease." With construction as its main market headlines expect no improvement until economic recovery.

Synthomer issued a trading update on the 30th, the date this tip was placed, saying despite less revenue and profit in 2023, positive cash generation resulted in lower than expected net debt. Incidentally the next day Jefferies cut the target price from 430p to 160p.

In Stockomendation four out of four analysts say HOLD, NEUTRAL or EQUAL WEIGHT they are Barclays, Jefferies and JP Morgan. Eight UK fund manager short positions currently open, view those here.

2. AVOID Inspecs Group

Second interesting stock pick this week is AVOID Inspecs Group by Steve Moore in ShareProphets with a tip performance of 8%.

Inspecs Group is a British global eyewear group with 70,000 retail outlets in 80 countries, and manufacturing bases in UK, Italy, Vietnam and China. The company was founded in 1988 with its first brand, Jean Paul Gaultier. Inspecs share price launched at 195p in 2020, reached an all-time high of 405p in 2022 and is today at 55p.

Steve Moore highlights a profit warning and contrasts with positive commentary attached to the recent Full Year Trading Update issued 29 January.

In Stockomendation three analysts say HOLD (Richard Evans), AVOID (Steve Moore) and SELL (Russ Mould). There are no active short positions open.

3. BUY Trainline

Third interesting stock pick this week is BUY Trainline by Berenberg with a tip performance of 7%

Trainline is a rail ticket aggregator based in London, founded in 1997 by the Virgin Group. Trainline share price launched at 411p in 2019, reached an all-time high of 545p in 2020, all-time low of 164p in 2022 and is today at 328p.

Shares soared after Berenberg published Trainline on its M&A Watchlist on Tuesday and raised the target price from 340p to 375p.

Five out of five analysts in Stockomendation: Berenberg and Shore Capital say BUY, JP morgan and Morgan Stanley say OVERWEIGHT and Barclays says EQUAL WEIGHT. Two short positions currently open, view those here.

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Disclaimer: The contents of this article should not be considered financial advice. Pricing data correct as at 2nd February 2024.