Borrowing Costs to Fall

Headlines say UK borrowing costs expected to fall further in 2026 and all stock picks this week are a mix of 80% BUY, 10% HOLD and 10% SELL.

1. BUY Solid State

Top performing stock pick this week is BUY Solid State by Berenberg with a tip performance of 8%.

Solid State is a British value-added electronics group providing durable components, assemblies, and systems for harsh, critical environments in defense, aerospace, medical, and industrial sectors, specializing in rugged computing, power, comms (antennas, radio), and imaging, operating through Components and Systems divisions with brands like Steatite, Active Silicon, and Durakool.

Headquartered in Redditch, it is listed on AIM under the ticker SOLI.

Solid State share price listed at 17p in 1996, rose to an all-time high of 301p in 2024 and is today at 160p.

The company has appointed a new Deputy Chair to take effect from 1 January. He has apparently purchased shares. The CEO died from a ‘short illness’ 1 month ago.

Berenberg initiated coverage on the stock with a BUY rating.

Two analysts in Stockomendation, the other one is Steve Moore with AVOID. There are no active UK fund manager short positions open.

2. OUTPERFORM Serco Group

Second top performing stock pick this week is OUTPERFORM Serco Group by RBC Capital with a tip performance of 5%.

Serco Group is a British defence, health, space, justice, migration, customer services, and transport company. Headquartered in Hampshire, Serco operates in Europe, the Middle East, Asia, Australia and North America.

Listed on the London Stock Exchange, it is a constituent of the FTSE 250 Index.

Serco share price listed in London at 24p in 1993, rose to an all-time high of 546p in 2013 and is today at 272p.

On 17th December the company announced the retirement of its CFO in this RNS prompting shares to rise 7% to the highest point in a decade.

In Stockomendation four analysts: Berenberg and Citi have BUY; RBC Capital has OUTPERFORM and JP Morgan is NEUTRAL. There are no active UK fund manager short positions open.

3. HOLD easyJet

Third top performing stock pick is HOLD easyJet by Mark Hartley in The Motley Fool with a tip performance of 4%.

easyJet is a British low-cost airline and package holiday company that flies to 34 countries.

Headquartered in Luton, it is listed on the London Stock Exchange under the ticker EZJ and is a constituent of the FTSE 100 Index.

easyJet share price launched at 294p in 2000, rose to an all-time high of 1,612p in 2015 and is today at 512p.

Mark Hartley is upbeat in his article stating analyst optimism about the future.

In Stockomendation five analysts: Mark Hartley and Kepler Chevreux with HOLD; Tom Winnifrith and Bank of America have BUY; Goldman Sachs is NEUTRAL. Two open UK fund manager short positions by Marshall Wace and Walleye Capital, view those here.

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Disclaimer: The contents of this article should not be considered financial advice. Pricing data correct as at 18th December 2025.