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Headlines like ‘UK economy shrinks in August as recession fears loom’ and top tips are a spread of BUY, SELL or HOLD this week at Stockomendation.

1. UNDERWEIGHT Hargreaves Lansdown

Top interesting tip this week is UNDERWEIGHT Hargreaves Lansdown by JP Morganwith a tip performance of 8%.

JP Morgan reiterated its underweight rating in August due to cost of living, lower forecast revenues and inflation but not much comment out there on the upcoming class action due to hit the embattled broker that buys institutional shares and sells to retail investors.

On 13 September the law firm RGL announced a group legal action against Hargreaves Lansdowne and its supervisor for its connection with the Woodford Equity Income Fund crash where investors lost £1 billion. Neil Woodford’s fund collapsed in 2019 and RGL will now pursue Hargreaves Lansdowne for damages as the broker was recommending the fund right up until it folded.

Law firm Harcus Parker launched a class action in June this year on behalf of 1,500 litigants hoping to clawback up to £18m.

Neil Woodforde’s business partner took home £13.8m in dividends in 2019 whilst investors lost £1billion.

2. BUY Barr

Second interesting tip this week was a BUY Barr by Berenberg with a tip performance of 3%.

Scotland’s ‘national drink’ Irn Bru manufacturer Barr is backed by Berenberg to beat the odds. It’s announced 3 profit upgrades in the past year and prices have steadily risen since its debut at 64p in 1993 to today’s respectable 456p, albeit with a few ups and downs along the way.

Saying that, this is still a target price cut from 650p to 610p by Berenberg, perhaps in recognition of tough times ahead, rising costs & inflation. Insider Stuart Lorimer bought a small number of shares on Friday, but we think this is inconsequential as the total was less than £200. Although trading is down 3%, 3 out of 4 analysts have recently rated Barr as buy perhaps in recognition of its safe space in consumers hearts and on their shelves as a low-cost staple household purchase.

3. SELL Asos

Third interesting top tip this week is a SELL ASOS by Shore Capital with a tip performance of 3%.

Shore Capital reiterated the SELL rating on everyone’s favourite fast fashion retail store and didn’t change the target price. Rumours of acquisition are in the air as foreign investors smell the sinking pound and heed the opportunity, even as the UK faces recession. Low price and falling on an (allegedly) darling stock – will a foreigner snap it up?

Depressing 2023 revenue forecasts and ballooning stock levels has got Asos in a ‘precarious position.’ Year to date losses of 78% and earnings downgrades don’t bode well to boot! So what’s next for Asos?

The top stock pickers have a track record or understand the direction of Mr Market so follow the top rated professional Share pickers, analysts and brokers on Stockomendation and also see what the UK best amateur stock pickers are picking in the UK Share Picking Game

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Disclaimer: The contents of this article should not be considered financial advice. Pricing data correct as at 13th October 2022..