Investment: Sharewatch

BUY

Credit Suisse First Boston tips Logica (556p), which it describes as an IT services company on steroids, putting a 750p 12-month target on the shares. It points out that the company has niches, such as mobile telephony and retail banking, where demand is likely to get even stronger. Teather & Greenwood says Waterfall (55p) is an emerging leisure group that is showing strong earnings growth. The shares look cheap, while the prospect of a link-up with rival European Leisure makes it a good two-way bet.

HOLD

Commerzbank has downgraded Slough Estates from buy to hold, citing the house builder's strong performance since the start of the year. Slough has outperformed the FTSE All-share index by 17 per cent since January. Commerzbank says it would have outperform the index by a further 10 per cent over the next 12 months to justify a buy recommendation.

UNDERPERFORM

Imperial Tobacco shares could be about to peak, thinks BT Alex.Brown. The broker predicts earnings growth of 6-7 per cent a year after 1999 - similar to growth at its rival Gallaher - but rates Imperial as underperform (680p).