Happy Easter

Happy Easter and all stock picks are a mix of 82% BUY, 8% SELL and 10% HOLD.

1. BUY Direct Line

Top stock pick this week is BUY Direct Line Group (DLG) which is tied between UBS and Jefferies with a tip performance of 9%.

Direct Line Group is one of the UK's largest insurance companies and owns well-known brands including Direct Line, Churchill, Darwin, and Green Flag. The company employs over 9,000 people and it offers general insurance products across motor, home, commercial, travel, pet, and rescue. Direct Line Group was formed in 2012 by the divestment of The Royal Bank of Scotland Group’s insurance division, through an initial public offering, and is listed on the London Stock Exchange under the ticker DLG.

DLG share price launched at 203p in 2012 and is now at 196p.

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 Costain Group

Second stock pick this week is BUY Costain Group by Russ Mould in the The Telegraph with a tip performance of 9%.

Costain Group is a British construction and engineering company that was founded in 1865 in Liverpool. The contractor is headquartered in Maidenhead, England and employs 3,500 people. Costain was one of the first companies to achieve the BSI Kitemark for innovation and is listed on the London Stock Exchange under the ticker COST.

Costain Group share price launched at 915,300p in 1988 and today are 75p.

In his article Mould says the full year results which were released in this RNS on 12 March are positive and indicate undervaluation due to lower profit and revenue in the transportation division in the full year results. He issued this tip on 25th March when the share price was 67p, 9% lower than today’s value.

In Stockomendation two analysts say BUY they are Russ Mould and Sumayya Mansour. There are no active short positions open.

3. AVOID Aeorema Communications

Third interesting stock pick this week is AVOID Aeorema Communications by Steve Moore in ShareProphets with a tip performance of 6%

Aeorema Communications owns events and advertising copmanies. The company was founded in 2001. Aeorema Communications share price launched at 75p in 2002, rose to an all time high of 34,561p 2 months later and is now at 53p.

In his article Steve Moore references the latest company announcement Interim Results and FY Projections, view the RNS here, and wonders why there is no detail in the release about the recent profit warning issued to shareholders. Moore questions the accounting and concludes caution.

In Stockomendation Steve Moore says AVOID and Tom Winnifrith says HOLD. There are no active short positions open.

The teams at Stockomendation wish all our members, followers and readers a Happy Easter!

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Disclaimer: The contents of this article should not be considered financial advice. Pricing data correct as at 28th March 2024.