US Recession Fears

Is the Pound on track for worst losses in nearly a year amid US recession fears with stock picks are a mix of 77% BUY, 12% HOLD and 11% SELL.

1. BUY Rolls-Royce Holdings

Top stock pick this week BUY Rolls-Royce Holdings (RR.) by Bank of America with a tip performance of 12%.

Rolls-Royce Holdings (RR.) is a British multinational company known primarily for its engineering expertise, particularly in aerospace and defence. The company designs, manufactures, and services power systems, including aircraft engines, for civil and military use. It also has a presence in the energy sector, providing power solutions for marine and industrial applications.

Rolls-Royce Holdings is currently listed at 484p, with a 52 week high of 503p.

Rolls-Royce has made a dramatic recovery since the pandemic, with a 74% profit increase, resumed dividends, and rising share prices under CEO Tufan Erginbilgiç. The company is on track to surpass its 2027 profit and cash flow targets by 2024. While the civil aircraft division leads this turnaround, all business segments have improved. However, concerns about supply chain issues and future industry downturns could challenge sustained growth.

Rolls-Royce Holdings secured an order to supply and maintain 60 Trent 7000 engines for Cathay Pacific's new Airbus A330-900 fleet, aimed at modernizing their existing A330-300s. This order, reflecting confidence in the Trent 7000 and A330neo, includes engines benefiting from a £1 billion investment to extend their lifespan. The engines, capable of using sustainable aviation fuel, will help Cathay achieve its sustainability goals. Following the news, Rolls-Royce shares rose 1.8%.

Other brokers on Stockomendation are also positive, with Goldman Sachs, UBS and JP Morgan all saying BUY. There are no active short positions open.

2. BUY YouGov

Second stock pick this week is BUY YouGov (YOU) by Berenberg with a tip performance of 10%.

YouGov (YOU) is a UK-based international research and data analytics firm. It specializes in online market research, offering insights into consumer opinions, behaviours, and trends through surveys and data collection. Investors view YouGov as a leader in data-driven market intelligence, with a growing global presence and potential for steady revenue through its subscription-based model and custom research services.

YouGov is currently listed at 546, with a 52 week high of 1,240p.

YouGov has announced a cost-optimization plan targeting £20 million in annual savings through reducing support functions, discontinuing underperforming products, and cutting third-party costs. The company also acquired AI-focused firm Yabble to enhance its audience insights capabilities. Despite these moves, YouGov's growth has lagged behind its 2023 plans, with lower-than-expected sales and profits. Full-year revenue projections were slightly increased, but operating profit is still down from 2023 levels.

Other brokers on Stockomendation are also positive, with UBS and Deutsche Bank both saying BUY. There is one active short position open by GLG Partners LP (0.58%).

3. Buy Pantheon Resources

Third interesting stock pick this week is Speculative Buy Pantheon Resources (PANR) by Canaccord Genuity with a tip performance of 10%

Pantheon Resources (PANR) is a UK-based oil and gas exploration company focused on developing and producing hydrocarbons in Alaska. The company targets onshore oil reserves and aims to unlock significant value through exploration and development activities. Investors view Pantheon Resources as a high-risk, high-reward opportunity, given its focus on untapped Alaskan oil prospects, which could lead to substantial returns if successful but carry exploration and market risks.

Pantheon Resources is currently listed at 18.6p, with a 52 week high of 45.5p.

Pantheon Resources raised $29 million through an oversubscribed share placing, surpassing its initial $18.5 million target. The funds will advance its Alaskan assets, particularly the upcoming Megrez-1 well, which targets a 609-million-barrel resource. The new shares were issued at a 14% discount, and directors participated in the funding. Success at Megrez-1 could significantly impact the company's future, making it a key focus for investors.

Currently on Stockomendation the analyst Tom Winnifrith is negative on the stock with SELL recommendation. There are two active short position open by Citadel Securities GP LLC (0.5%) and The Mangrove Partners Master Fund, Ltd. (1.53%).

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Disclaimer: The contents of this article should not be considered financial advice. Pricing data correct as at 8th August 2024.