14 Hikes

The Bank of England has raised interest rates for the 14th successive time in a row and all stock picks are a mix of BUY: 88.5%, HOLD: 6% and SELL: 5.5%

1. AVOID Ethernity

Top stock pick this week is AVOID Ethernity Networks Ltd by Steve Moore in ShareProphets with a tip performance of a rather large 19%.

Ethernity Networks is an Israeli London based semiconductor for networks provider. Ethernity Networks share price launched at 159p in 2017 and is now at 2p. In a highly technical space, it may appear to the non-technical reader that the approach behind the language on the website seems to be to confound with science.

Delivery delays seem to be the main reason behind the fall in value with the company announcing it has delivered part of a large recent order but that it won’t hit delivery targets, and this issue ongoing from the last company update in 2022.

Despite a new charging model, Steve says cash is low for the latest forecast.

Steve Moore is the only analyst rating Ethernity Networks in Stockomendation with AVOID, and there are no short positions open.

2. ADD Domino’s Pizza

Second top stock pick this week is ADD Domino's Pizza Group by Peel Hunt with a tip performance of 8%.

Shares jumped 28p or 8% on everybody’s favourite pizza delivery service this week at the announcement this week of strong sales and earnings increase forecast. It reported half year growth at 10% and revenue up almost 20%. Post tax profits doubled, and it’s not hard to see that good news has travelled fast. It also announced it would stop raising prices as the cost of supplies stabilise.

Domino’s listed at USD386c in 2021 and is today at 400c.

Four out of four analysts in Stockomendation as OVERWEIGHT, BUY or ADD with Liberum Capital saying HOLD and there are five short positions currently open.

3. OVERWEIGHT S4 Capital

Third interesting top stock pick this week is OVERWEIGHT S4 Capital by Barclays with a tip performance of 2%.

S4 is a London based digital advertising agency founded by Martin Sorrell who founded WPP.

Shares lost 25% of value last week as its big tech clients cut funding. It is a tough market for advertisers as clients seek more value for their spend.

Presumably Barclays assumes the stock is now underweight hence the overweight rating, but with such a low tip performance, it could just be luck. With Credit Suisse, Morgan Stanley and Barclays reducing their target price just prior, is it sadistic to think the target price was cut to produce a BUY rating? City AM jumps on the wagon with a bad luck headline, but only time will tell what’s in store for S4!

In Stockomendation Barclays says OVERWEIGHT, Numis says ADD and Christopher Ruane says BUY and there are two short positions open.

Image credit : Domino’s Pizza

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Disclaimer: The contents of this article should not be considered financial advice. Pricing data correct as at 3rd August 2023.