Inflation Drops

Shop inflation drops and all stock picks are a mix of 81% BUY, 10% SELL and 9% HOLD.

1. SELL Itaconix

Top stock pick this week is SELL Itaconix by Steve Moore in ShareProphets with a tip performance of 11%.

Itaconix plant based polymers derived from itaconic acid which are used various industries, including personal care, homecare and the industrial sector as alternative to regular packaging and carbon based substances. The company was founded in 2005 and is headquartered in New Hampshire, USA.

Itaconix share price listed on London Stock Exchange in 2012 at 3,723p and is today at 179p.

On the 2nd of April Itaconix issued this Trading Statement RNS which states that the inability to come to an agreement with a major merchandising customer means that revenues will be down on previous expectations. In his article Moore questions the narrative around the update and states Itaconix as a ‘loss-making and cash-burning avoid/sell.’

In Stockomendation Steve Moore is the only analyst with SELL and there are no active short positions open.

2. LONG TERM BUY Dr. Martens

Second top stock pick this week is LONG TERM BUY Dr. Martens by Stephen Wright in The Motley Fool with a tip performance of 8%.

Dr. Martens is a shoe company that was founded in 1947 in Germany is now headquartered in Notthinghamshire. It’s first boot was made in Wollaston, England on 1 April 1960 and called the 1460.

This tip was placed on 2 April which is when Marathon Partners a US based major shareholder in the business write a letter advising the company to seek a strategic review recommending sale of the business, as it would do better as part of a larger retail group portfolio or small private holding.

Dr. Martens has suffered an 80% share price drop since listing in 2021 and down 30% in the past year. Sales slumped by 20% in Q4 of 2023 due to lower wholesale orders and Red Sea shipping delays.

In Stockomendation Russ Mould and Sumayya Mansour say BUY, Stephen Wright says LONG TERM BUY, RBC Capital says SECTOR PERFORM and Goldman Sachs says SELL.

There are two active short positions open, view those here.

3. BUY Barclays

Third top stock pick this week is BUY Barclays by Jefferies with a tip performance of 4%.

Barclays is a British bank that was founded in 1690. It is the 23rd largest company in the UK and a component of the FSTE 100 index.

Barclays share price launched at 19p in 1988, reached an all-time high of 2,301p in April 2002 but then fell off a cliff to 614p by May of that year enacting a 4:1 share split.

Jefferies has decided to raise the target price by 50% to 330p from 220p.

In Stockomendation two analysts say BUY they are Jefferies and Charlie Keough, RBC Capital says OUTPERFORM and JP Morgan says OVERWEIGHT. 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 4th April 2024.