TRADER TIPS: City insiders say buy travel company On the Beach, but steer clear of Sage Group whose rating is ‘sell’
BUY THIS: On the Beach
It’s all sun and games for travel company On the Beach, which had its price target upped by Berenberg on Friday from 600p to 630p.
The broker reiterated its ‘Buy’ rating for the firm, noting its recent trading update showed it could deliver strong earnings growth.
Berenberg added that the market seems to be currently placing no value on the firm’s global expansion plan.
Hot stuff: Berenberg reiterated its ‘Buy’ rating for On the Beach, noting its recent trading update showed it could deliver strong earnings growth
SELL THIS: Sage Group
Investors would be wise to steer clear of Sage right now, claim analysts at Deutsche Bank, who cut the software company’s rating to ‘Sell’.
The broker said that competitive pressures are increasing, as cheaper new players were moving into the market and higher-end firms were stealing Sage’s mid-market customers.
Sage sells accountancy software to mainly mid-sized businesses.