Burnham Tax

Headlines say FTSE and pound fall, borrowing costs rise as Burnham eyes Westminster return and all stock picks are a mix of 83% BUY, 5% HOLD and 12% SELL.

1. AVOID XP Factory

Top performing stock pick is AVOID XP Factory by Steve Moore in ShareProphets with a tip performance of 13%.

XP Factory operates owner-managed and franchised venues such as escape rooms and Boom Battle Bar which offers competitive socialising activities like axe throwing and crazy golf. Headquartered in London, it is listed on AIM under the ticker XPF.

XP Factory share price launched at 154p in 2016, its’ all-time high, and is today at 17p.

On 12th May the company issued its’ FY26 Trading Update in this RNS stating a resilient FY26 performance despite challenging market conditions, with full-year revenue slightly ahead and adjusted EBITDA expected to be marginally ahead of revised market expectations though below the prior year. Growth was driven by strong Escape Hunt owner-operated venues while Boom Battle Bar delivered modest 2% revenue growth but saw an 8% like-for-like decline, still outperforming the wider competitive socialising sector. The group faced cost inflation, particularly from labour, and ended the year with net debt of £5.7m. Strategically, XP Factory continued site expansion, initiated £1m of annualised HQ cost savings, and is targeting significant medium-term growth in Escape Hunt to 100 sites, with current FY27 trading in line with expectations.

In his article Steve Moore questions the positive tone of the announcement and refers to a profit warning issued in February.

In Stockomendation Moore is the only analyst with AVOID. There are no active fund manager short positions.

2. BUY Greggs

Second top performing stock pick this week is BUY Greggs by UBS with a tip performance of 9%.

Greggs is the UK’s largest bakery chain, famous for its affordable, freshly baked food-on-the-go. Founded in 1939 as a humble pushbike delivery service in Newcastle, it has grown to over 2,600 shops nationwide, employing more than 33,000 people and serving over 6 million customers a week.

Greggs share price launched at 58p in 1993, rose to an all-time high of 3,337p in 2021 and is today at 1,673p.

On 13th May the company issued its Trading Update in this RNS reporting improved trading in the first 19 weeks of 2026, with total sales up 7.5% to £800m and like-for-like sales growth of 2.5%, accelerating to 3.3% in the most recent 10 weeks, reflecting stronger momentum despite a challenging market backdrop. The company continues to expand its estate, opening 41 new shops to reach 2,759 locations and targeting around 120 net openings for the full year, while investments in supply chain capacity remain on track. Cost inflation expectations are unchanged at around 3%, supported by forward buying of commodities and energy, and the group expects good first-half profit progress, although costs related to its new Derby facility will weigh more in the second half. Overall, the Board reiterated that full-year expectations remain unchanged, underpinned by solid operational performance and continued product innovation.

In Stockomendation six analysts: UBS and Berenberg with BUY; Deutsche Bank says SELL; Jefferies and Shore Capital say HOLD and Steve Moore says AVOID. Ten open UK fund manager short positions, view those here.

3. HOLD Victrex

Third top performing stock pick is HOLD Victrex plc by Jefferies with a tip performance of 6%.

Victrex plc manufactures plastics. Founded in 1993 it is a constituent of the FTSE 250 Index.

Victrex share price launched at 248p in 1996, rose to an all-time high of 3,396p in 2018 and is today at 590p.

On 11th May the company issued its’ half-yearly report in this RNS stating a mixed H1 2026 performance, with revenue up 1% to £147.1m driven by 6% volume growth, but underlying profit before tax down 18% to £19.0m due to weaker sales mix, pricing pressure and currency effects. The group recorded a statutory loss of £44.0m, largely due to a £60.6m non-cash impairment of its China manufacturing facility, although it remains committed to the region as a key growth market. Margins declined and net debt rose modestly, while the interim dividend was held flat at 13.42p. Management is implementing a Profit Improvement Plan, including around 10% headcount reduction and targeting at least £10m of annual savings by FY27, with some benefits expected in H2 2026. Despite ongoing market and macro uncertainties, the company expects full-year underlying PBT of £42m–£44m and sees longer-term growth potential supported by its high-performance polymer portfolio.

In Stockomendation five analysts: Deutsche Bank and Jefferies say HOLD; UBS has SELL; Canaccord Genuity says BUY and JP Morgan is NEUTRAL. Three open UK fund manager short positions – view those here.

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Disclaimer: The contents of this article should not be considered financial advice. Pricing data correct as at 15th May 2026.