Savaged by Peers

Headlines say City regulators savaged by peers for companies’ compliance costs and all stock picks this week are a mix of 75% BUY, 12% HOLD and 13% SELL.

1. OUTPERFORM FirstGroup

Top performing stock pick this week is OUTPERFORM FirstGroup by RBC Capital with a tip performance of 11%.

FirstGroup PLC is a leading private sector provider of public transport services in the UK, with operations in both bus and rail. It operates under two main divisions: First Bus and First Rail. FirstBus is a regional bus operator, while First Rail is the UK's largest rail operator.

FirstGroup share price launched at 115p in 1995, rose to an all-time high of 659p in 2007 and is today at 224p.

In its Final Results announcement on 10 June you can see in this RNS FirstGroup anounced a profit increase resulting from recent price increases & cost cutting measures which were a response to inflation. Shares rose as a result of the announcement.

In Stockomendation three analysts: Berenberg and HSBC with BUY and RBC with OUTPERFORM. Three open UK fund manager short positions, view those here.

2. BUY Wizz Air

Second top performing stock pick this week is BUY Wizz Air Holdings by UBS with a tip performance of 5%.

Wizz Air is a Hungarian ultra low-cost carrier group headquartered in Budapest, Hungary. The company includes subsidiaries Wizz Air Hungary, Wizz Air Malta, Wizz Air Abu Dhabi, and Wizz Air UK. The airlines serve numerous cities across Europe, as well as some destinations in North Africa, the Middle East, and South and Central Asia. As of 2023, the airline group has its largest bases at Budapest Ferenc Liszt International Airport, Bucharest Henri Coandă International Airport, and London Luton Airport and flies to 194 airports. Its parent company, Wizz Air Holdings plc, is registered in Jersey and listed on the London Stock Exchange. It is a constituent of the FTSE 250 Index.

Wizz Air share price launched at 1,310p in 2015, rose to an all-time high of 5,500p in 2021 and is today at 1,148p.

With UK Investor headline ‘Nosediving WizzAir provides a buying opportunity’ headwinds faced by the struggling airline is seen as a bargain for some. Final Results were issued on 5 June in this RNS causing shares to drop 60% with grounded planes apparently a big problem for the airline. Slight uptick on 9th perhaps due to Director shareholding, see this RNS.

In Stockomendation five analysts with five different ratings: Bernstein has OUTPERFORM, RBS Capital says SECTOR PERFORM, JP Morgan is NEUTRAL, UBS says BUY and Deutsche Bank has HOLD. Fourteen open fund manager short positions, view those here.

3. OVERWEIGHT Hochschild Mining

Third top performing stock pick this week is OVERWEIGHT Hochschild Mining by Barclays with a tip performance of 4%.

Hochschild Mining plc is a leading British-based silver and gold mining business operating in North, Central, and South America. It is headquartered in Lima, Peru, with a corporate office in London, is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. The main shareholder is the Peruvian businessman Eduardo Hochschild.

Hochshild Mining share price launched at 314p in 2006, rose to an all-time high of 581p in 2011 and is today at 269p.

In the news this week as its main Brazil gold mine ‘Mara Rosa’ gets shut down, shares subsequently tumbling 20% and a number of major banks reissuing lower ratings, Barclays and some other banks perhaps see a bargain and have been rewarded this week with a slight uptick in performance.

Five analysts in Stockomendation: Berenberg with HOLD, Barclays and JP Morgan with OVERWEIGHT, RBC Capital has OUTPERFORM and Hot Stock Rockets says BUY. Three active UK fund manager short positions, view those here.

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Disclaimer: The contents of this article should not be considered financial advice. Pricing data correct as at 12th June 2025.