TRADER TIPS: Buy Cineworld but sell takeaway firm Just Eat

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City & Finance Reporter for the Daily Mail

BUY THIS: Cineworld   

Peel Hunt believes investors should buy shares in cinema operator Cineworld.

In a trading update, the firm reported a 15 per cent increase in profits this week and brokers believe its imminent acquisition of rival Regal will boost profits further.

Sitting pretty: In a trading update, Cineworld reported a 15 per cent increase in profits

Sitting pretty: In a trading update, Cineworld reported a 15 per cent increase in profits

Sitting pretty: In a trading update, Cineworld reported a 15 per cent increase in profits

Peel Hunt says: ‘Management have a strong record for generating good returns from acquisitions.’

SELL THIS: Just Eat  

Analysts at Deutsche Bank reckon now is the time to sell shares in Just Eat.

The takeaway firm this month announced a £50m investment plan to see off rivals Uber and Deliveroo.

But Deutsche says: ‘While we think this move is strategic to defend Just Eat’s leadership position against competition, it will come at the expense of profitability.’

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