Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Sunday share tips: Empiric Student Property, Frasers Group

(Sharecast News) - The Financial Mail on Sunday's Midas column recommended investors hold onto their shares in Empiric Student Property. In particular, it highlighted the expected jump in the 18-25 year old population in the UK throughout the 2020s.

That should drive for university student accommodation, Midas said.

Furthermore, since the current chief executive officer, Duncan Garrood, came onboard in 2020, the share price had staged a partial recovery.

Garrood had 40 years' experience and was at the helm of Punch Taverns when it was bought out for £1.8bn in 2017.

Midas said the company's progress since had been "encouraging", that there was "more to come" and that the shares should respond.

"Midas recommended Empiric in 2014, when the shares floated on the stock market at £1. Early years were promising but the company then fell out of favour and the price slumped to 58p before Garrood came on board," the tipster said.

"The stock has since risen to 86p but remains undervalued. Existing shareholders should sit tight. Newcomers may also find the stock rewarding."

The Sunday Times's Lucy Tobin told readers to buy shares of Frasers Group, arguing that its Sports Direct chain was "flourishing", notwithstanding the cost of living crisis in the UK.

Not only had it spruced up its offering with more fashionable brands, the company had also expanded deeper into Europe with the purchase of German chain SportsScheck.

What was Fraser's ambition? To become Europe's largest sports retailer.

The retailer's shares had done well year-to-date, rising by 11% to around 800.0p, but remained well off the 940.0p highs reached last summer.

Its price-to-earnings multiple, at 9.9 for 2024, was also considerably lower than its historic level of 16.

Frasers Group's brands looked disparate, but they were bought on the cheap and the company had a strong balance sheet, while cash inflows were above £500 at the full-year stage this summer.

And further acquisitions were expected.

"The ride may be choppy, but Sports Direct should succeed where it expands. Buy Frasers."

Share this article

Related Sharecast Articles

Thursday newspaper round-up: Migration, air traffic control, triple lock
(Sharecast News) - Andy Burnham must overhaul Shabana Mahmood's migration reforms or risk overstretching social care and fuelling far-right sentiment, the TUC general secretary, Paul Nowak, has warned. Speaking ahead of the TUC's annual congress in Brighton next week, Nowak welcomed the "sense of optimism" around Burnham's fledgling government, but he urged the PM to act in a series of areas, including migration and the cost of living. - Guardian
Wednesday newspaper round-up: Air traffic control breakdown, Bet365, consumer finance claims
(Sharecast News) - Flight delays and cancellations were expected to continue into Wednesday at UK airports after another air traffic control failure kept planes grounded for hours, affecting hundreds of thousands of passengers. At least 177 flights scheduled for Wednesday to and from UK airports had been cancelled, plane tracking site Flightradar24 said, "nearly all at London Heathrow". More than 1,000 were cancelled by about 8pm on Tuesday. - Guardian
Tuesday newspaper round-up: UK retailers, Volkswagen, stock market funds
(Sharecast News) - UK retailers plan to create up to 100,000 short-term placements for young people not in employment, education or training (Neet) over the next three years to give them a first step on the ladder to paid work. In partnership with the Department for Work and Pensions (DWP), more than 40 retailers, including Marks & Spencer, Pets at Home, Asda and the John Lewis Partnership, will offer Neets aged 18-24 placements of two to four weeks to gain "the skills and confidence needed to take their first step into work". - Guardian
Monday newspaper round-up: JLR, family-owned manufacturing businesses, airline passengers
(Sharecast News) - Professional designers should not feel "threatened" by the rapid growth of generative AI, according to business leaders, despite fears over job losses in the sector. With design and film production companies and manufacturers all adopting AI at an accelerating pace, industry bodies said the technology would be used to enhance the work of designers rather than replace them. - Guardian

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.