Inflation Up Again

Headlines say inflation up again and all stock picks a mix of 72% BUY, 13% SELL and 15% HOLD.

1. AVOID Hostmore

Top stock pick this year is AVOID Hostmore by Steve Moore in ShareProphets with a tip performance of 10%.

Hostmore is a hospitality brand that owns TGI Fridays and another brand. Hostmore share price launched at 118p in 2021 and is today at 20p.

It has fallen into disregard this week with flat sales growth in the half year and a turnaround strategy planned.

In his article Steve Moore is sceptical of the comments that accompany the latest accounts and enquires about accounting periods that may cause the picture to look more optimistic than it really is. Shares were down 8.4% on Tuesday but up 71% in 12 months.

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

2. SELL Hammerson

Second interesting stock pick this week is SELL Hammerson by Societe Generale with a tip performance of 7%.

Hammerson owns 10 shopping centres in the UK and also owns 40% stake in Bicester Village in Oxford. Lately it has been in talks to sell its position which has boosted its ailing share price.

Hammerson share price launched at 203p in 1988, reached an all-time high of 544p in 2007 and is today at 26p.

Weirdly Societe Generale upgraded Hammerson to HOLD from SELL whilst downgrading the share price to 22p from 25p. Since then Peel Hunt also upgraded Hammerson to ADD with a target of 25p along with Bank of America to UNDERPERFORM and a target price of 18p.

In Stockomendation five analysts with four different opinions: Pell Hunt with ADD, Societe Generale and Goldman Sachs with SELL, Bank of America with UNDERPERFORM and Barclays with OVERWEIGHT. Five fund manager short positions currently open in Stockomendation, view those here.

3. SELL Rentokil

Third interesting stock pick this week is SELL Rentokil Initial by UBS with a tip performance of 4%

Rentokil is a pest control business based in Crawley that was founded in 1925. Rentokil share price launched in 1993 at 103p, reached an all-time high of 664p just 6 months ago and is today at 395p.

Shares fell on Monday 0.33% but it still outperformed the market (fell 0.39%). No company announcements in January but Iridian Asset Management reduced its stock by half on the New York Exchange where it is also listed.

In Stockomendation three out of five analysts say BUY they are Jefferies, Emma Powell and Chris Bailey; UBS says SELL and RBC Capital says OUTPERFORM. Eight UK fund manager short positions are currently open, see those here.

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Disclaimer: The contents of this article should not be considered financial advice. Pricing data correct as at 18th January 2024.