Expert share tips: Diageo, Carpetright, Intertek & more

Carpetright, Diageo and Intertek are among the stocks hitting the headlines this week.

Here’s your weekly round up of how the experts view key stocks.

1. Intertek - BUY

Symbol: ITRK.L

Index: FTSE 100

Intertek share price (Image: Google)

Intertek has been helping companies ensure their products, processes and systems are of sufficient quality for more than a century.

Helal Miah, research analyst at investment firm The Share Centre, believes its prospects are helped by the increasing number of regulatory safety standards in place around the world.

“A lot of its business is related to commodities and although weak conditions in those markets had an impact, things are looking steadier now which is a positive,” he said.

Increasing international trade will also help.

“More middle class consumers are coming on board and ordering more goods from around the world,” he said. “Any increase in trade volumes is good news for this company.”

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2. Johnson Matthey - HOLD

Symbol: JMAT.L

Index: FTSE 100

Johnson Matthey share price (Image: Google)

The company, which is involved in sustainable technologies, has revealed sales of £876 million in its third quarter update – 2% up on last year.

The business is well known for producing catalytic converters and is set to benefit from increased environmental pressures to reduce emissions.

Helal Miah, research analyst at The Share Centre, is optimistic about its prospects. The fact it’s rated as a 'hold' is due to being fairly valued.

“Emissions around the world are being controlled and there are more cars with diesel engines needing to adhere to clean environmental standards,” he said.

“Johnson Matthey is well positioned in this area.”

3. Diageo - SELL

Symbol: DGE.L

Index: FTSE 100

Diageo share price (Image: Google)

Diageo, whose drinks cabinet of world famous brands includes Johnnie Walker and Smirnoff, has announced it’s re-entering the Irish whiskey market after an absence of more than two years.

However, brokers Liberum have downgraded the stock from 'hold' to 'sell' and advocate investors take profits following a strong run in the shares and re-rating over the last two months.

Analyst Alicia Forry prefers value opportunities such as Heineken to Diageo.

“While we acknowledge the results delivered last week were good, in particular the Johnnie Walker improvement, we think the shares already price in a successful turnaround.

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4. Carpetright - BUY

Symbol: CPR.L

Index: FTSE SmallCap

Carpetright share price (Image: Google)

The UK carpet retailer believes the like-for-like sales growth of 6.8% over the past four weeks indicates its turnaround strategy is on track.

John Stevenson, analyst at advisers Peel Hunt, believes the performance over the key January sale period has boosted confidence in stores and bodes well for the fourth quarter.

“While we would like to see a more consistent growth trend over Q4, the store refurbishment programme and recovery strategy are showing further signs of traction,” he said.

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5. GVC Holdings - BUY

Symbol: GVC.L

Index: FTSE 250

GVC share price (Image: Google)

Shares in the multinational sports betting and gaming group have been under pressure for three months due to industry concerns such as potential marketing restrictions.

However, GVC has no retail exposure and the recent share price weakness has encouraged Numis Securities to upgrade its recommendation to 'buy'.

Analyst Richard Stuber was satisfied with the company’s recent trading update.

“It reaffirms our preference for gambling stocks which have online exposure, strong momentum and importantly wide geographical diversification,” he said.

The information included in this article does not constitute regulated financial advice. You should seek out independent, professional financial advice before making an investment decision.