Tax hikes or spending cuts

Ocado Group

In the headlines this week we don’t know if we’re voting for tax rises or spending cuts and all stock picks are a mix of 81% BUY, 7% HOLD, 12% SELL.

1. BUY Ashtead

Top stock pick this week BUY Ashtead Technology Holdings by Ben McPoland in The Motley Fool with a tip performance of 5%.

Ashtead Technology is a subsea equipment rental, advanced technologies and solutions provider for the global offshore energy sector. A subsea equipment rental company, it hires out everything from seabed inspection cameras to winches and dredging systems.

Ashtead technology share price listed on AIM in 1993, rose to an all-time high of 5,624p in 2021 and is today at 5,250p. It is a constituent of the FTSE AIM 50 and FTSE AIM 100 indices.

The tip was placed on 24th June when the stock was 723p. On 26 June the price had reached 742p.

In Stockomendation Ben McPoland, Berenberg and Goldman Sachs say BUY, RBC Capital says OUTPERFORM and Deutsche Bank says HOLD.

2. UNDERWEIGHT Ocado Group

Second stock pick this week is UNDERWEIGHT Ocado Group by Morgan Stanley with a tip performance of 4%.

Ocado Group plc is a British business based in Hatfield, England, which licenses grocery technology. It also owns a 50% share in the UK grocery retail business The company is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.

Ocado Group share price listed at 159p in 2010, reached an all-time high of 2,819p in 2020 and is today at 285p.

On 25th June it started the day as the FTSE’s biggest faller dropping more than 4% value. Morgan Stanley had cut the target price from 345p to 215p in response to Canadian supermarket chain Sobey’s axing the partnership. View the RNS here. On 20 June shares dived 15% at the news Sobery’s was delaying the opening of its robotic warehouse. The new site would have been Sobey’s fourth Ocado powered warehouse, and the chain also decided not to make the deal exclusive.

In Stockomendation Gordon Best and Oliver Rodzianko say WATCH, Goldman Sachs is NEUTRAL, Lauren Almeida says AVOID and Morgan Stanley is UNDERWEIGHT. There are 8 short postitions currently open, view those here.

3. BUY Rolls Royce

Third interesting stock pick this week is BUY Rolls-Royce Holdings by Edward Sheldon in The Motley Fool with a tip performance of 3%

Rolls-Royce Holdings develops and delivers power and propulsion solutions for safety-critical applications in the air, at sea and on land. The Company's segments include Civil Aerospace, Defense, Power Systems, and New Markets.

Rolls-Royce was the world's 16th largest defence contractor in 2018 when measured by defence revenues. The company is also the world's fourth largest commercial aircraft engine manufacturer, with a 12% market share as of 2020.

Rolls Royce listed on LSE at 39p in 1988 and rose to an all-time high of 461p where it is today. It is a constituent of the FTSE 100 index.

On 25th June Christoph Menard of Deutsche Bank raised the target price 20% to 555p from 465p and rated it as a BUY.

In Stockomendation four out of five analysts say BUY they are Edward Sheldon, Deutsche Bank, Jefferies and Goldman Sachs, and Ben McPoland says HOLD. There are no active short positions open.

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Disclaimer: The contents of this article should not be considered financial advice. Pricing data correct as at 27th June 2024.