Gambling marketer XLMedia (XLM:AIM) and car dealer Pendragon (PDG) are among Berenberg’s top picks for UK mid-cap value stocks. The investment bank thinks these stocks, plus a few others, still offer decent upside to investors despite the broader stock market having already rallied this year.

It believes investors could make approximately 20% profit through buying shares in XLMedia. Its 150p, 12-month price target compares to a 126p trading price at the time of writing.

It says the company is exposed to online real-money gaming and social gaming markets ‘where prospects look good’. It says XLMedia continues to diversify revenue streams into non-gaming areas and believes its strong net cash position should enable it to increase shareholder distributions or make strategic acquisitions.

Berenberg likes building products supplier Tyman (TYMN) as a play on further recovery in the North American housing market. It reckons shareholders could make nearly 15% gain on the stock when buying at 340.5p.

Elsewhere, it tips housebuilder MJ Gleeson (GLE), saying it is differentiated from peers by having ‘the lowest average selling price in the sector but the highest gross margins’. Berenberg has a 740p price target for Gleeson, believing its Strategic Land division ‘could be sold to uncover value’. The shares currently trade at 629.5p. (JC)

‹ Previous2017-05-25Next ›