Economy Grows

Headlines say UK economy grows 0.7% in the first quarter and all stock picks are a mix of 75% BUY, 13% HOLD and 12% SELL

1. BUY Midwich Group

Top performing stock pick this week is BUY Midwich Group by Berenberg with a tip performance of 21%.

Midwich Group plc is a United Kingdom-based AV distributor to the trade market, operating in EMEA, the UK, Ireland, and Asia Pacific and North America. Founded in 1979, Midwich distributes a wide range of AV products, including displays, projectors, professional audio, and lighting, and also provides services like technical advice and support.

Midwich Group share price launched at 235p in 2016, rose to an all-time high of 678p in 2018 and is today at 218p.

On 13th May Midwich held an AGM minuted in this RNS announcing a profit warning due to declining revenue in EMEA and North America despite gaining market share. Revenues in UK & Ireland rose during the same period however shares fell 17% from 212p at close on Monday 12th May to 175p after the announcement, regaining 14% to 199p by 9am on 13th.

In Stockomendation two analysts – Steve Moore with SELL and Berenberg with BUY. One open fund manager short position held by JP Morgan, view that here.

2. BUY Playtech

Second top performing stock pick this week is BUY Playtech by Deutsche Bank with a tip performance of 9%.

Playtech plc is a gambling software development company founded in 1999. The company provides software for online casinos, online poker rooms, online bingo games, online sports betting, scratch games, mobile gaming, live dealer games and fixed-odds arcade games online. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.

Playtech share price launched at 273p in 2006, rose to an all-time high of 995p in 2017 and is today at 365p.

On 13th May Playtech announced Director shareholding change in this RNS stating that the CEO and CFO bought shares as part of their remuneration policy which signals internal confidence in the company.

Deutsche Bank cut the target price from 9p to 4p and reiterated its BUY rating.

In Stockomendation 2 analysts both with BUY they are Deutsche Bank and Jefferies. There are no active short positions open.

3. BUY Lancashire Holdings

Third top performing stock pick this week is BUY Lancashire Holdings Limited by Goldman Sachs with a tip performance of 4%.

Lancashire Holdings Ltd is a global specialty insurance and reinsurance provider with operations in Bermuda, London, and Australia. Based in Bermuda and operating in London, Lancashire Holdings is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.

Founded in 2005, Lancashire Holdings focuses on short-tail, direct, specialty insurance risks, particularly in areas like property, energy, marine, and aviation, according to the company's website.

Lancashire Holdings share price launched at 321p in 2005, rose to an all-time high of 900p in 2013 and is today at 612p.

On 6th March the company announced Director shareholding change in this RNS.

In Stockomendation three analysts with three different ratings: Goldman Sachs with BUY, RBC Capital has OUTPERFORM and Barclays has EQUAL WEIGHT. One open short position, view that here.

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Disclaimer: The contents of this article should not be considered financial advice. Pricing data correct as at 16th May 2025.