Receding Inflation

Receding inflation in the UK and all stock picks are a mix of 81% Buy, 8% Hold and 11% Sell.

1. AVOID Revolution Bars Group

Top performing stock pick this week is AVOID Revolution Bars Group by Steve Moore in ShareProphets with a tip performance of 9%.

The Manchester based city bar chain with 67 premium bars and 22 gastro pubs in its portfolio recently announced a full year loss due to the cost of living crisis.

Revolution Bars Group share price listed at 173p in 2015 and is now at an all-time low of 3p per share.

In his article Steve Moore is sceptical of the positive narrative put out by the board in previous announcements and advises AVOID / SELL due to admittance of a difficult trading environment over the next 12-18 months.

Steve Moore is the only analyst in Stockomendation with a recommendation of AVOID and there are no active short positions open.

2. OVERWEIGHT EnQuest

Second top stock pick this week is OVERWEIGHT EnQuest by JP Morgan with a tip performance of 7%.

Enquest is an independent energy company with operations in the UK and Malaysia. The website says it is ‘focused on delivering energy security and decarbonisation.’

EnQuest share price listed at 83p in 2010 and is now at 17p per share.

Moderate BUY rating from JP Morgan. JP Morgan has had an OVERWEIGHT rating on EnQuest since February 2022 but lowered the target price from 34p to 16p in May of the same year.

EnQuest’s latest announcement on 13 October was regarding a bond issue: a successful refinancing of its existing $792.3 million senior notes due in 2023.

Three out of three analysts in Stockomendation rate EnQuest differently: Barclays says EQUAL WEIGHT, JP Morgan says OVERWEIGHT and Gary Newman says BUY. There is one active short position open by Citadel Advisors.

3. OUTPERFORM XPS Pensions Group

Third interesting stock pick this week is OUTPERFORM XPS Pensions Group by RBC Capital with a tip performance of 5%.

XPS Pensions Group is a UK pensions consulting group. Its website says it has 15 UK locations, has administered 1 million member pensions and has 1,500 clients.

XPS Pensions Group share price listed at 153 in 2017 and is now at 220p.

Yesterday (17 October) it announced full year results and shares jumped almost 10% at the 28% advisory, 16% administration and 23% self-invest revenue rises.

Canaccord Genuity raised its target price from 252p to 261p at the announcement. Royal Bank of Canada also raised its target price for the stock from 220p to 245p.

In Stockomendation Shore Capital and Tom Winnifrith say BUY and RBC Capital says OUTPERFORM. There are no active short positions open.

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Disclaimer: The contents of this article should not be considered financial advice. Pricing data correct as at 19th October 2023.