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31 January 2019

Redmayne Bentley’s Top Trades

Below we take a look at the most frequently traded shares through Redmayne Bentley over the last couple of weeks and consider why they have been so popular.
 
BRITISH AMERICAN TOBACCO
(BATS)
Index: FTSE 100
Sector: Tobacco
Market Capitalisation: £60,372.03m
 
The decline in shares of British American Tobacco looks to have slowed slightly from a near six-month fall this week as brokers turn optimistic on the tobacco giant. Heightened regulatory pressures in the US over vaping products have taken their toll on the company in recent months, however, brokers now believe that the company has been oversold in the market and have subsequently reaffirmed their positive ratings. This week, UBS reaffirmed a ‘buy’ rating on the company and set a price target of 4000p, indicating a 68% upside, with Barclays also confirming its ‘overweight’ rating.
 
BLUE PRISM (PRSM)
Index: FTSE AIM 100
Sector: Software & Computer Services
Market Capitalisation: £896.74m
 
Process automation software maker Blue Prism has also been a highly traded stock in recent weeks after it announced its full-year results. Revenues at the firm were up 125% to £55.2m, matching market expectations, however, the firm guided to a better than expected £154m revenue target for 2020. The company also announced a £100m cash raise in order to fund its ambitious global growth strategy and, while this is likely to accelerate losses again in 2019, Merrill Lynch stated that the call was “the right
step to ensure Blue Prism’s competitive position remains strong.”
 
LLOYDS (LLOY)
Index: FTSE 100
Sector: Banks
Market Capitalisation: £41,652.99m
 
Similarly to British American Tobacco, Lloyds has seen high trading volumes in recent weeks due to a flurry of broker rating and price target changes. The overall picture seems positive for the company from the point of view of the brokers, however, many have lowered their target prices after severe declines in 2018. Credit Suisse cut its price target from 90p to 84p, whilst analysts at JP Morgan also lowered their price target from 85p to 80p, with the brokers giving the company a rating of ‘outperform’ and ‘overweight’ respectively.
 
Top Trades is published every fortnight in Equity Insight, a newsletter written by our stockbrokers and investment managers. It provides market commentary, a focus on individual sectors, technical analysis, potential trading opportunities and share reviews.
 
Please note that investments and income arising from them can fall as well as rise in value and you may lose some or all of the amount you have invested. Past performance and forecasts are not a reliable indicator of future results or performance. Please note that this communication is for information only and does not constitute a recommendation to buy or sell the shares of the companies mentioned.
Redmayne Bentley’s Top Trades
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