Vulnerable Markets

The Bank of England warns markets vulnerable to a sell-off and all stock picks are a mix of 81% BUY, 9% HOLD and 10% SELL.

1. UNDERPERFORM Burberry Group

Top stock pick this week UNDERPERFORM Burberry Group by ODDO BHF with a tip performance of 7%.

Burberry Group is a British luxury fashion house established in 1856 and headquartered in London. It is a constituent of the FTSE 250 Index. The early brand pioneered the use of gabardine a tightly woven waterproof fabric and is used to make outerwear. In 1911, Roald Amundsen, the first man to reach the South Pole, and Ernest Shackleton, who led a 1914 expedition to cross Antarctica were outfitted by Burberry. A Burberry gabardine jacket was worn by George Mallory on his attempt on Mount Everest in 1924.

Burberry share price launched at 226p in 2002, rose to an al-time high of 2,594p in 2023 and is today at 638p.

In the news this week for being the 2nd biggest fall in brand value over the year, rated by Kantar’s BrandZ index and beaten only by St. James’ Place. The brand ahs halved in value over the year plagued by succession issues and profit warnings amidst a tough time for luxury brands. It lost its place in the FTSE100 in August.

In Stockomendation out of five analysts two say HOLD they are HSBC and Deutsche, Citi is NEUTRAL, Charlie Keough says ADD and ODDO BHF says UNDERPERFORM. There are currently 7 fund manager short positions open, view those here.

2. BUY Shell

Second stock pick this week is BUY Shell by Muhammad Cheema in The Motley Fool with a tip performance of 4%.

Shell plc is a British multinational oil and gas company headquartered in London. It has a primary listing on the London Stock Exchange (LSE) and secondary listings on Euronext Amsterdam and the New York Stock Exchange. Formed in April 1907 through the merger of Royal Dutch Petroleum Company of the Netherlands and The Shell Transport and Trading Company of the United Kingdom, it is the world's 44th largest company and a constituent of the FTSE100 index.

Shell share price listed at 1,196p in 1996, reached an all-time high of 2,937p in 2024 and is today at 2,542p.

US investment bank Citi rated Shell as a top pick earlier this week, giving shares a boost.

In Stockomendation five analysts – ODDO BHF is NEUTRAL, Gordon Best says WATCH, JP Morgan has OVERWEIGHT and Muhammad Cheema and Jefferies say BUY. There are no active short positions open.

3. OUTPERFORM Marlowe

Third interesting stock pick this week is OUTPERFORM Marlowe by RBC Capital with a tip performance of 3%

Marlowe provides business-critical services and software to ensure regulatory compliance and safety. It offers services such as fire safety, water and air hygiene, occupational health, and testing, inspection, and certification. Customers include office complexes, manufacturing plants, local authorities, and FTSE 100 companies.

Marlowe share price launched at 29p in 2007, reached an all-time high of 544p and is today at 335p.

On 30 September Marlowe reported a solid performance for the five-month period to 30 August in the recent AGM. View the announcement here.

Two analysts in Stockomendation, RBC Capital with OUTPERFORM and Berenberg with BUY. Three open 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 3rd October 2024.