Report by Messels

Messels adds two new stocks to its FTSE 250 Momentum portfolio, which now comprises 27 companies. The portfolio continues to show a preference for Building Services (5 holdings), F&B (4), Financials (4) and Industrials & Services (4). New additions: PayPoint - reasserting price and relative bases from medium term support. Kier - renewed the uptrend and is now breaking out of 5-year price and relative ranges. Other notable charts this week: Chemring - breaks to new 1-year highs and renews outperformance. Coats - developing price and relative bases at long term support levels. AJ Bell - testing resistance at the 5-year highs and gains relative momentum. Telecom Plus - renews medium-term price and relative uptrends.

Report by Willis Welby

The median implied to Y3 EBITM ratio for Willis Welby’s UK coverage is now 68 for which you get median consensus Y3 revenue growth of 5.4%. And over the last three months the median move in Y2 EBIT is still an UPGRADE of 0.8%. The Q2 reporting season could be a rude wake up call, but so far, they cannot see the huge economic downturn that is priced into this part of their coverage. And if it does not materialise, then UK mid cap shares are seriously cheap. Industrials (Manufacturing & Support Services) look particularly interesting - highlights Coats, Morgan Advanced, Qinetiq, Hays and Serco. They also see decent revisions and a compelling balance of growth and expectations across Technology names such as Team17, Moneysupermarket, Auction Technology and Kainos.