Dilemma

Bank of England is in a dilemma about rates and all stock picks are a mix of 85% BUY, 7% HOLD and 8% SELL.

1. BUY Griffin Mining

Top interesting stock pick this week is BUY Griffin Mining by Berenberg with a tip performance of 12%.

Griffin Mining Limited is a mining and investment company that primarily explores for zinc, gold, silver, lead, and base and precious metal deposits. The company’s principal property is the Caijiaying zinc-gold mine located in the People’s Republic of China. The company has been engaged in developing the Caijiaying zinc-gold project since 1997.

Griffin Mining Limited has recently released its unaudited interim results for the six months ended 30th June 2023. The company reported revenues of $69.5 million, gross profit of $21.7 million, and operating profit of $9.1 million. The company processed 738,924 tonnes of ore in the first half of 2023 to produce 28,095 tonnes of zinc, 697 tonnes of lead, 151,608 ounces of silver, and 7,980 ounces of gold.

Griffin Mining said in the six months to June 30, pretax profit jumped by 78% and current stock price is up 87%.

Griffin Mining share price listed at 24.50 in 1997, reached an all-time high of 160 in 2018 and is now at 90p.

Two out of two analysts in Stockomendation say BUY they are Shore Capital and Berenberg and there are no active short positions open.

2. BUY Ithaca Energy

Second top stock pick this week is BUY Ithaca Energy by Jefferies with a tip performance of 10%.

Ithaca Energy is an independent oil and gas operator in the North Sea with a strong track record of material value creation. The company was founded in 2004 and has been on a rapid growth trajectory in the last three years, following a series of transformational M&A transactions and organic growth, building operations with significant scale and longevity. Today, Ithaca Energy is one of the largest independent oil and gas companies in the UKCS, ranking second by resources and third by production. The company has stakes in six of the ten largest fields in the UK North Sea and two of the largest three prospective developments.

Ithaca Energy has recently acquired Shell’s 30% stake in the Cambo oil and gas field, giving the North Sea producer full ownership of the field. The acquisition will provide Ithaca Energy with full control over the progression of the future development of Cambo, which is considered the second-largest undeveloped oil and gas discovery in the UK North Sea. The consideration for the asset is payable on the earlier of either first oil or the receipt of proceeds of any subsequent sale of a working interest in Cambo by Ithaca Energy.

Ithaca Energy has also released its unaudited interim results for the six months ended 30th June 2023 2. The company reported revenues of $69.5 million, gross profit of $21.7 million, and operating profit of $9.1 million.

Ithaca Energy launched at its highest ever share price of 233p in 2022 and is now at 160p. Two out of three analysts in Stockomendation rate it as a BUY they are Jefferies and Goldman Sachs and Barclays says UNDERWEIGHT. There are no active short positions open.

3. BUY Keywords Studios

Third top stock pick this week is BUY Keywords Studios by Shore Capital with a tip performance of 9%.

Keywords Studios is an Irish video game industry services company that provides technical and creative services to the global video games industry 1. The company was founded in 1998 and initially provided localization services for business software before transitioning to the video game industry 2. Today, Keywords Studios is one of the largest independent video game companies in the world, with over 50 studios located across Europe, North America, South America, and Asia.

According to an article from Proactive Investors, the City has responded well to the company’s recent interim results, despite a number of visible headwinds impacting the video games services and localization company. The company reported a 19.4% increase in first-half group revenue on Tuesday, reaching €383.5m thanks to a combination of robust organic growth and strategic acquisitions. However, ongoing strike action in the US entertainment industry is proving problematic for gaming outsourcing group Keywords Studios. The SAG-AFTRA writers’ strike that began in May has since expanded to include actors – and has brought some of the group’s projects to a halt.

Keywords Studios share price launched at 147p in 2013, climbed to an all-time high of 3,232p in 2021 and is now at 1,544p.

Three out of five analysts in Stockomendation say BUY they are Berenberg, Shore Capital and Zaven Boyrazian. Barclays says OVERWEIGHT and Deutsche Bank says HOLD. There are five short positions open.

Image credit: Arvind Vallabh via Unsplash

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Disclaimer: The contents of this article should not be considered financial advice. Pricing data correct as at 14th September 2023.