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Sunday share tips: Unilever, Tertre Rouge

Sun 28 January 2024 20:25 | A A A

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(Sharecast News) - The Sunday Times's Lucy Tobin tipped shares of Unilever to her readers, arguing that the shares were cheap.

Lower sales volumes on the back of the cost-of-living crisis had sent its shares down to £37, against £50 in 2018 and even beneath the £40m at which Kraft Heinz launched a bid in 2017.

But Tobin said that looked "short-termist", pointing out that the shares had been left changing hands in 16 times forwards earnings.

That compared to a historical average of 24 times.

"It's a cheap entry point," she said.

Furthermore, she judged that Unilever's new chief, Hein Schumacher, was a "safe pair of hands".

Schumacher had already announced plans to focus on Unilever's 30 most profitable brands.

As well, the company's dividend was described as "deeply reliable" and the company's markets were geographically diverse.

Then of course there was the solid track record of activist investor Nelson Peltz.

"The maker of Marmite might inspire a love-it-or-hate-it sentiment in the City, but Unilever looks ripe for an investment comeback. Buy."

The Financial Mail on Sunday's Midas column told investors that Tertre Rouge share offer was worth "a closer look".

The classic car outfit is looking to raise £50m via a share offering at 105p apiece.

Two-thirds of the funds would be spent on a six-car collection, £5m on Run To, a company that caters to classic car owners, and the remainder on other new vehicles, acquisitions and operating costs.

"Luxury goods have had a hard time lately, with demand slacking off as inflation and high interest rates take their toll on consumers' pockets," Midas said.

"Ultra-exclusive classic cars seem to be a different breed. Tertre Rouge offers access to this rarefied market and there is a chance of rubbing shoulders with Formula 1 champions too. At £1.05, this share offer is worth a closer look."

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