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. Click here for the Mail on Sunday's Midas column.

Sunday Telegraph

Shares in telecoms group Vodafone have bounced back after it lost out in its bid for AT&T Wireless. While the failed bid has raised some major strategic issues and rattled a few shareholders, given the group's strong cashflow the shares still look cheap, especially compared with those of rivals. Buy.

Engineering group Invensys's £1.8bn disposals programme has been replaced by a £2.7bn refinancing package. The shares have almost halved over the past year, and Invensys still faces a tough few months convincing investors to buy into its new strategy. Keep selling.

Sunday Times

Analysts expect BAE Systems to report pre-tax profits of £740m this week. At a prospective price earnings ratio of 11, BAE is cheap compared with its historic valuation and, and on about half the multiple of its best American rivals. But it still has problems. Wait until it is known who will replace Sir Dick Evans as chairman.

Independent on Sunday

Investment bank UBS believes there is significant growth in bookmaker William Hill (470p). Much of this growth will come through fixed odds betting terminals, which UBS thinks will help boost the take for William Hill's machine estate from £21.3m in 2001 to £76.7m in 2005.

Sunday Business

Broker JP Morgan expects earnings per share growth at British American Tobacco to lift from 2% in 2003 to 11% in 2004 and 14% in 2005, excluding the positive impact of the proposed merger of its Brown & Williamson subsidiary in the US with RJ Reynolds. The growth would be the highest in the global tobacco sector and among the highest in the global consumer group, and reflects share buy-backs, cost savings and the improving US market.

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