Growth Downgraded

Headlines this week say UK has had growth downgraded again and all stock picks are a mix of BUY: 84%, HOLD: 5% and SELL: 11%.

1. BUY Rolls Royce

Top interesting stock pick this week is BUY Rolls-Royce Holdings by Dr. James Fox in The Motley Fool with a tip performance of 10%.

Rolls Royce share price surged to a four year high this week as the Chief Exec announced his forecast which was more bullish than even the most optimistic City forecasts. It is aiminf for £2.8 billion profit by 2027 which is four times 2022 profit. It also aims to increase margin 2% to 15% in the same timeframe.

Rolls Royce share price listed at 40p in 1988, reached an all-time high of 436p in 2013 and is now at 268p.

In Stockomendation five out of five analysts say HOLD or BUY they are Harvey Jones, Ben McPoland, Smuaya Mansour, Charlie Carman and Dr. James Fox. There are three short positions open.

2. HOLD Frontier Developments

Second interesting stock pick this week is HOLD Frontier Developments by Berenberg with a tip performance of 7%.

Frontier Developments is a video game manufacturer based in Cambridge. In the news this week was the flop of its latest game causing lower than forecast revenue announcement, cut from £108 million to between £80m and £95m.

The announcement wiped more than a fifth of the share price, the lowest level since 2013.

Frontier Developments share price listed at 161p in 2013, rose to an all-time high of 3,300p in 2021 and is now back down at 161p.

Two out of four analysts in Stockomendation rate it as HOLD they are Berenberg and Shore Capital, Steve Moore says AVOID and Numis says REDUCE. There are five short positions open.

3. HOLD Watches of Switzerland

Third interesting stock pick this week is HOLD Watches of Switzerland Group by Stifel with a tip performance of 6%.

On 22 November Watches of Switzerland share price closed at 613.00p (sell) and 615.00p (buy), experiencing a 5.00p (0.82%) change. On 27 November the company released half year results, In the half-year results announcement on November 27, 2023, Watches of Switzerland Group plc (WOSG) shared significant insights:

1. Financial Performance :
   Revenue from luxury watches constituted 87% of the group's total revenue.
   Sales growth in this segment was an impressive 31% compared to the previous year.
   Group sales reached £765 million, a substantial leap from the £586 million posted in the first-half of the 2022 financial year.
2. Business Outlook :
   The management likely provided further details on the company's performance during the first half.
   Investors gained clarity on growth prospects, market trends, and strategic initiatives.
3. Investor Sentiment :
   The stock market's reaction to the announcement would have been closely monitored.
   Positive news might have led to an increase in share prices, while negative developments could have impacted investor sentiment.

HSBC lifted its price target on 'buy' rated Watches of Switzerland to 759p from 630p on 28 November.

In Stockomendation two out of five analysts say HOLD they are Stifel and Emma Powell, Edward Sheldon says WATCH, RBC Capital says OUTPERFORM and Jon Smith says AVOID. There are five short positions currently open.

UK Fund Manager Short Positions
See which UK Fund Managers are betting against your investments by accessing current & historical short positions on UK companies showing you which fund manager has shorted which company and by how much.

Join Now

Think you can pick stocks? Play the November league UK Share Picking game FREE : uksharepickinggame.co.uk

Disclaimer: The contents of this article should not be considered financial advice. Pricing data correct as at 1st December 2023.