Investment: Sharewatch

BUY

Buy Bunzl (289p), says Charterhouse Securities. Bunzl's current valuation does not reflect its medium-term profit growth potential in its largest divisions. A positive trading statement at the AGM said prices were moving up, following three years of deflationary pressure on prices growth. A forthcoming analysts' trip to Bunzl's US operations should bolster the stock. Whilst the shares have outperformed after Bunzl's recent move to the support services sector, the broker's price target remains 330p.

Buy National Power (468p), says Salomon Smith Barney. The energy group is likely to change from a dividend stock to an asset stock. The happy history of British Gas since it cut its dividend sets a precedent for NP doing the same. NP has hinted at a dividend cut, and this would reveal the value of its assets more fully. The group also has a sensible overseas investment strategy. NP is at the worst stage of a British Gas-style transition at the moment, and sentiment will improve from here on. The broker's target price is 616p.

SELL

Sell Railtrack at 1318p, says Commerzbank, highlighting the impact of regulatory concerns. Railtrack is embarking on a long-awaited phase of heavy investment - around pounds 1.6bn this year - but says itself that no matter how much it improves it will not be enough for the media, its regulator or the travelling public. Commerzbank says the earnings outlook is dull and that the shares are likely to underperform despite dividend growth prospects.

UNDERPERFORM

Northern Foods. The combination of a tough trading environment and problems at key customer Marks & Spencer make shares in Northern Foods an under- perform, according to BT Alex.Brown. Full year profits next week are forecast at pounds 92m compared top pounds 92.4m last time. Much will depend on a recovery at M&S and the payback on heavy capital expenditure but at 134p the outlook for the shares looks uncertain.

Start your day with The Independent, sign up for daily news emails
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Evening Administrator

£8 per hour: Recruitment Genius: This Pension Specialist was established early...

Guru Careers: Executive Assistant / PA

£30 - 35k + Bonus & Benefits: Guru Careers: We are seeking an Executive Assist...

Ashdown Group: Graduate Application Support Analyst

£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...

Reach Volunteering: External Finance Trustee Needed!

Voluntary post, reasonable expenses reimbursed: Reach Volunteering: Would you ...

Day In a Page

War with Isis: Iraq's government fights to win back Tikrit from militants - but then what?

Baghdad fights to win back Tikrit from Isis – but then what?

Patrick Cockburn reports from Kirkuk on a conflict which sectarianism has made intractable
Living with Alzheimer's: What is it really like to be diagnosed with early-onset dementia?

What is it like to live with Alzheimer's?

Depicting early-onset Alzheimer's, the film 'Still Alice' had a profound effect on Joy Watson, who lives with the illness. She tells Kate Hilpern how she's coped with the diagnosis
The Internet of Things: Meet the British salesman who gave real-world items a virtual life

Setting in motion the Internet of Things

British salesman Kevin Ashton gave real-world items a virtual life
Election 2015: Latest polling reveals Tories and Labour on course to win the same number of seats - with the SNP holding the balance of power

Election 2015: A dead heat between Mr Bean and Dick Dastardly!

Lord Ashcroft reveals latest polling – and which character voters associate with each leader
Audiences queue up for 'true stories told live' as cult competition The Moth goes global

Cult competition The Moth goes global

The non-profit 'slam storytelling' competition was founded in 1997 by the novelist George Dawes Green and has seen Malcolm Gladwell, Salman Rushdie and Molly Ringwald all take their turn at the mic
Pakistani women come out fighting: A hard-hitting play focuses on female Muslim boxers

Pakistani women come out fighting

Hard-hitting new play 'No Guts, No Heart, No Glory' focuses on female Muslim boxers
Leonora Carrington transcended her stolid background to become an avant garde star

Surreal deal: Leonora Carrington

The artist transcended her stolid background to become an avant garde star
LGBT History Month: Pupils discuss topics from Sappho to same-sex marriage

Education: LGBT History Month

Pupils have been discussing topics from Sappho to same-sex marriage
11 best gel eyeliners

Go bold this season: 11 best gel eyeliners

Use an ink pot eyeliner to go bold on the eyes with this season's feline flicked winged liner
Cricket World Cup 2015: Tournament runs riot to make the event more hit than miss...

Cricket World Cup runs riot to make the event more hit than miss...

The tournament has reached its halfway mark and scores of 300 and amazing catches abound. One thing never changes, though – everyone loves beating England
Katarina Johnson-Thompson: Heptathlete ready to jump at first major title

Katarina Johnson-Thompson: Ready to jump at first major title

After her 2014 was ruined by injury, 21-year-old Briton is leading pentathlete going into this week’s European Indoors. Now she intends to turn form into gold
Syrian conflict is the world's first 'climate change war', say scientists, but it won't be the last one

Climate change key in Syrian conflict

And it will trigger more war in future
How I outwitted the Gestapo

How I outwitted the Gestapo

My life as a Jew in wartime Berlin
The nation's favourite animal revealed

The nation's favourite animal revealed

Women like cuddly creatures whilst men like creepy-crawlies
Is this the way to get young people to vote?

Getting young people to vote

From #VOTESELFISH to Bite the Ballot