Sunday newspaper share tips

By THIS IS MONEY
Updated:

 

EACH weekend, This Is Money brings you a round-up of shares being recommended in the Sunday City pages. You can read our tips from The Mail on Sunday's Midas column here. Below are tips from the Sunday Telegraph and The Business, which also published tips this weekend.

Use the links on the left of this page to view our interactive share graphs and full archive of news and stock market announcements for the companies mentioned. Click here for our brilliant Tips & Tactics section.

Sunday Telegraph

• Shares in supermarkets group Morrisons have fallen to 191p since it issued a profits warning over sales in Safeway, the chain it recently acquired for £3bn. But Safeway stores that have been converted to the Morrison format have already seen a 37% uplift in sales. Progress may be no better than steady over the next few months but keep buying.

• News and information group Reuters (336.75p) has talked down revenue forecasts for 2004 to 2006. But chief executive Tom Glocer is continuing to focus the business and investors should hang on for his reforms to be reflected in the figures. Hold.

The Business

• High Street chain Marks & Spencer (371p) will issue a trading update on Monday on new chief executive Stuart Rose's strategy for the group and why Philip Green's 400p a share bid undervalues it. But broker JP Morgan is sceptical Rose can justify M&S is worth more than 400p. At that price the stock would be trading on a price earnings multiple of 14.6 for 2005-06, well above the sector average of 11.8.

It says that in order for M&S to trade in line with its sector, Rose will need to find £212m of cost savings or profit gains, equivalent to a 24% uplift on its estimates for the 2005-06 financial year.

• Broker Morgan Stanley says music group EMI has greatly improved its management and operations over the past two years and it said flat trading indications for the first quarter of 2004-05 were 'relatively encouraging' given EMI's industry forecast of zero to 4%. The shares closed at 225p on Friday and the broker has set a price target of 250p.

More useful links

Tips & Tactics
The Financial Mail on Sunday's Midas
Pat Lay's smaller companies spotlight
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