Five to buy
Heineken
The Telegraph The beer giant has struggled to deliver investors much gezelligheid, the Dutch word for “good times”, in recent years. But this could be a good entry point into a globally diversified “brand powerhouse”. Input cost pressures, which forced price rises and a drop in volume sales, have started to ease. Greater spending on marketing and digital incentives should also start to bear fruit as the world’s second biggest beer business taps into the “premiumisation” trend in drinks. €89.34
International Consolidated Airlines Group
Shares Resilient travel demand is fuelling a post-Covid bounce at IAG, owner of British Airways. Operating profits have surpassed 2019 levels, while management has restored 95.7% of 2019 capacity. While demand for business travel is patchy, BA and stablemates Iberia and Aer Lingus look poised to cash in on strong demand for “premium” leisure travel, both within Europe and on transatlantic routes. Volatile oil prices are factored in by the forward price/ earnings (p/e) ratio of just 4.5. 171p
Schroder Real Estate Investment Trust
The Mail on Sunday Shares in this Reit have halved since 2018 amid a sell-off in the property sector. Yet management is more innovative than its peers, moving proactively into greening its office blocks and retail parks by installing better boilers and renewable energy. The strategy makes sense: modern, energy-efficient buildings are in strong demand from tenants because of soaring heating costs, while building owners are coming under legal pressure to cut carbon footprints. The Reit enjoys a “robust financial position”, while the dividend yield is almost 8%. 42p
SSP Group
The Sunday Times Demand for travel is proving surprisingly robust, but a postpandemic recovery is proving elusive for this travel caterer, which owns the Upper Crust and Ritazza brands found in airports and train stations. Covid, which necessitated three emergency fundraisings, has cast a long shadow over the shares, but the business is growing well, augmented by recent acquisitions overseas. The dividend has been reinstated and trading finally has some momentum. A forward p/e ratio of 16 looks decent value compared with the pre-Covid peaks. 219p
One to sell
Pennon Group
Interactive Investor This water company owns South West Water and is currently in the process of adding Surrey-based SES Water to its portfolio. The shares have fallen by 60% since the highs of summer 2021 as criticism of th
