UK Inflation Reduces

UK Inflation hit the lowest point since 2021 this week and all stock picks are a mix of 84% BUY, 9% SELL and 7% HOLD.

1. BUY Sabre Insurance

Top stock pick this week is BUY Sabre Insurance Group by Berenberg with a tip performance of 10%.

Sabre Insurance is a motor insurer based in Dorking. It was founded in 1982 and operates under brands such as Go Girl, Insure2Drive and Drive Smart.

Sabre Insurance share price launched at 250p in 2017 and is today at 178p.

On 19 March the insurer posted its Q4 results in this RNS. The company reported record profit due to a 31% increase in premiums from price hikes. Profit is up £7 million to £18 million from £11 million.

Since then RBC Capital hiked the target price to 220p from 200p and Berenberg raised to 211 p from 200p.

In Stockomendation RBC Capital says OUTPERFORM, Berenberg says BUY and Barclays says OVERWEIGHT. There are two active UK Fund Manager Short Positions open, view those here.

2. BUY DFS

Second stock pick this week is BUY DFS Furniture by Jefferies with a tip performance of 9%.

DFS is a British furniture retailer with stores in UK, Spain and Ireland. It was formed in 1969 in Doncaster.

DFS Furniture share price launched at 255p in 2017 and is today at 112p.

On 19 March in this RNS the company announced interim results including margin improvement, lower operating costs and resilient profit performance.

In Stockomendation Jefferies and Berenberg say BUY, UBS is NEUTRAL and Chris Bailey says AVOID. There are two active short positions open.

3. BUY Bytes Technology

Third interesting stock pick this week is BUY Bytes Technology Group by Panmure Gordon with a tip performance of 5%

Bytes Tehcnology share price launched at 332p in 2020 and is now at 531p. is a Surrey-based computer software reseller founded in 1982.

Scandal hit this week in the news about a 14% share price crash due to an ongoing investigation into the former CEO Neil Murphy, accused of making more than 119 unauthorised and undisclosed trades worth £6 million in shares, or insider dealing, over the past 12 months. When the FCA requested information Murphy failed to disclose and resigned on the same day, prompting the investigation. It transpires that most shares were sold under the then share price of 573p which is generally a negative indication. An insider is willing to sell shares below market price is not good news. At 7am on 18 March it released an update on the investigation, view the RNS here.

Shares are down 15% since January.

In Stockomendation Jefferies and Numis say HOLD and Panmure Gordon says BUY. There are two active UK Fund Manager Short Positions open, view those here.

UK Fund Manager Short Positions
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Disclaimer: The contents of this article should not be considered financial advice. Pricing data correct as at 21st March 2024.