Exodus of Wealth

Headlines prepare for an exodus of wealth due to budget and all stock picks are a mix of 72% Buy, 11% Hold and 17% Sell.

1. BUY RWS

Top performing stock pick this week is BUY RWS Holdings by Deutsche Bank with a tip performance of 8%.

RWS is a British company that provides intellectual property translation, filing and search services, technical and commercial translation and localisation, and develops and supports translation productivity and management software.

RWS share price launched at 525p in 2000 under the ticker RWS. On 29 October it issued a trading update in this RNS stating slightly negative effects due to currency exchange rates. Shares in RWS fell 17% following the update, however Deutsche Bank and Berenberg reiterated their BUY rating on the stock stating reversal of fortunes and that AI’s impact on the industry was probably overstated in the past.

In Stockomendation four analysts of which two say BUY they are Deutsche Bank and Berenberg, and two say AVOID being Lauren Almeida and Steve Moore. There is one UK fund manager short position open, view that here.

2. BUY Applied Nutrition

Second top performing stock pick this week is BUY Applied Nutrition by Lauren Almeida in The Times - Tempus with a tip performance of 6%.

Applied Nutrition is a UK company that manufactures and sells sports and lifestyle nutrition supplements for athletes, fitness enthusiasts, and people looking to improve their health and wellbeing.

Applied Nutrition share price launched just last week on 25th October at 135p. In her article Almeida notes one of the biggest IPOs this year, opening at a value of £340 million. She highlights the predominantly B2B business model and large profit margin and markets abroad. Her summary is “Highly profitable business in a growing market.”

In Stockomendation Lauren Almeida is the only analyst so far with BUY and there are no open UK fund manager short positions.

3. UNDERWEIGHT Lloyds Banking

Third interesting stock pick this week is UNDERWEIGHT Lloyds Banking Group by JP Morgan with a tip performance of 4%

Lloyds Banking Group is a British financial institution formed through the acquisition of HBOS by Lloyds TSB in 2009. It is one of the UK's largest financial services organisations, with 30 million customers and 65,000 employees. Lloyds Bank was founded in 1765 but the wider Group's heritage extends over 320 years, dating back to the founding of the Bank of Scotland by the Parliament of Scotland in 1695.

Lloyds share price first listed on the London Stock Exchange on October 8, 1986.

The motor finance scandal regarding commission payments that could cause panic across the entire motor finance industry was resolved last week as the court of appeal ruled against FirstRand Bank and Close Brothers Group that consumers could not have consented to loans that involved “secret” commission payments to brokers and car dealers. That is, that motor dealers acting as credit brokers have a duty to disclose to customers commissions paid to them by lenders. Lenders (e.g.Lloyds Bank) then bear liability for any non-disclosure by the dealers. Lloyds is the UK’s largest provider of motor finance. Shares tumbled 10% at the news.

In Stockomendation five analysts with five different ratings: RBC Capital with SECTOR PERFORM, Morgan Stanley with EQUAL WEIGHT, JP Morgan with UNDERWEIGHT, Roland Head with AVOID and Citi with NEUTRAL. 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 31st October 2024.