Sunday newspaper share tips

EACH weekend, This Is Money brings you a round-up of shares being recommended in the Sunday City pages.

Please note, some of the tips below are the views of brokers and not the newspapers.

This Is Money updates its brilliant Broker views page every day with scores of buy, sell and hold ratings from the leading investment houses. You'll find the link on the left hand side of our News & Markets section. Click here for last week's page.

Sunday Telegraph

Budget airline easyJet saw its shares go into tailspin last week after a warning that stiff price competition could hit its full-year profits. Although the industry looks likely to consolidate in the next few years, the size of easyJet means it should be OK in comparison with smaller newcomers. It remains a long-term investment and the slump in its share price means there is a bargain to be had. Buy at 230p.

Solid full-year results have helped underline the sound prospects of alternative telecoms carrier Thus - despite recent falls in its share price. Thus cut pre-tax losses to £25 million, compared with £58.8 million a year ago, and boasts blue chip customers such as Tele2 and BSkyB. Thus remains a good bet for the future so buy at 26p.

Shares in health and beauty retailer Boots have fallen since it announced in March that a huge investment programme would hit profits. This should have an effect in the long term but it is likely to remain under pressure for some time, especially as sales comparisons with 2003 are tough. Customers splashed out on sun cream last summer during the heatwave. With margins also likely to be under pressure as supermarkets encroach on its core business, investors should sell at 609p.

The Business

Equipment hire company Vp, which supplies tools to sectors ranging from rail to oil and gas, has a good record in recent years and this is set to continue. Investment bank Durlacher estimates that pre-tax profits have risen from £7.8 million to £8.6 million in the year ended March 31, and the remain der of its balance sheet is strong. Vp is well placed to be a consolidator in the fragmented equipment hire sector so investors should buy at 125 1/2p.

Enlarged technology group SiRViS IT is expected to post revenues of £3.3 million this year and pre-tax profits of £400,000. But next year's story is expected to be one of doubling turnover as the group benefits from a full-year contribution from Linetex Computers. With the IT support services sector ready for an upturn, SiRViS IT looks a solid bet. Buy at 8.50p.

Broker view from the Sunday Express

Takeaway chain Domino's Pizza is tipped as a tasty buy by Numis following a strong statement at its annual general meeting and excellent final results. Numis thinks the business is beginning to bed down - which could mean big returns for investors - as the trend for people to stay in and eat gathers pace. Buy at 205 1/2p.

Shares in outdoor-goods retailer Blacks Leisure have stagnated recently along with the general clothing sector but broker Arbuthnot reckons the chain is more attractive than many high street rivals. With earnings forecast to grow by 15% driven by higher like-for-like sales and more selling space, the company compares favourably with its peers. Buy at 405 1/2p.

City stockbrokers Dresdner Kleinwort Wasserstein believes the Royal Bank of Scotland should be valued more in line with global banks such as UBS, Citigroup and HSBC. This is because RBS generates more than 30% of revenues from abroad and has strong merger and acquisition skills. Buy at 1650p.

Use the Companies links on the left of this page to view our interactive share graphs and full archive of news and stock market announcements. Click here for our new Tips & Tactics section.

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