…and some to hold, avoid or sell
Debenhams Investors Chronicle
The department store has secured short-term refinancing and is aiming to improve product quality, supply chain and capital efficiency. But the store estate is “bloated” and there are too many “unknowns”. Sell. 4.1p.
Dunelm Group Investors Chronicle
The homewares retailer has bucked retail trends with rising revenues across its physical stores and online. It’s trading well, with improving margins. Forecasts may be “too conservative”. Hold. 744p.
Paddy Power Betfair The Sunday Telegraph
Tough regulation is hitting the industry, with advertising curbs and reduced stakes on fixed-odd betting terminals. But Paddy Power is growing in the US as gambling goes global, and has a £1bn cash pile. Hold. £61.90.
Pearson The Sunday Times
The former FT publisher’s new focus as supplier of digital educational materials hasn’t been smooth sailing. Shares jumped last year, but it will take more than cost-cutting for the company to experience a real uplift. Hold. 919p.
Ryanair Investors Chronicle
Despite a strong business model with handsome margins, fierce competition has pushed fares down at the discount airline, while costs are rising. Last year’s widespread cancellations have damaged its reputation. Sell. s11.30.
Wood Group The Times
The oil- and gas-focused energy services group is a strong business. But the SFO investigation into Amec Foster Wheeler (owned by Wood) is dragging on. Shares are weak with no catalyst for improvement. Avoid. 512p.