Amid continued economic uncertainty, many analysts have cut their stock price forecasts – but some companies still have huge growth potential, even in tough times.
Here are some UK companies with over 100% upside potential, according to the latest figures from TipRanks.
These stocks may be going through a tough time right now, but the fundamentals are strong and analysts believe in a longer-term recovery in their stock prices.
We used the TipRanks stock filter tool to pre-select these actions and compare them.
S4 share capital
S4 Capital is an advertising firm run by industry veteran Sir Martin Sorrell. The company provides its digital media and technology services in 32 countries around the world.
The company is going through tough times and has cut annual profits to £120m. The company said the significant increase in hiring costs hurt profits and it has stopped hiring for the remaining year.
However, analysts see light at the end of the tunnel. They believe the long-term growth is still intact and the recent reporting issues the company has encountered are relatively minor.
The S4 Target capital price is 394.0p, which has a huge upside potential of around 220% at the current price level. Four Star Analyst Thomas Singlehurst of Citigroup is very bullish on the stock with a target price of 640p, representing a 400% rise in the share price.
888 equity shares
888 Holdings is a leading online betting and gaming company, offering casino, sports, bingo and poker games.
During the pandemic, people used their time indoors to play online games, so the company’s shares surged. However, it has lost about 70% of its value in the last year.
The company and its competitors flew under the radar of UK regulations for safer gambling guidelines, which impacted revenue. Its half-year revenue was £332.1 million, compared to £428 million for analysts.
Analysts believe the company has stable brands in its portfolio, and the recently closed acquisition of William Hill should boost revenue. The stock seems like a risky choice at the moment, but given the long-term outlook and the falling share price, the opportunity cannot be missed.
The 888 forecast stock is 329p, around 172% higher than the current price level. The company has three buy ratings and one hold rating from analysts.
Moonpig Group Action
Moonpig Group is a UK based online gift company, delivering cards, flowers and gifts primarily to the UK, Netherlands and Ireland.
The company’s shares lost the shine gained during the pandemic after its earnings began to decline. The the stock price fell 48% so far this year.
But the company’s annual results for 2022 painted the picture of another successful year. Moonpig recorded revenue of £304.3 million, an increase of 75.8% over 2020.
Revenues were driven by growth in the number of customers and the size of orders. However, there was a 17.3% drop in revenue compared to last year due to the normalization of sales induced by COVID.
Susannah Streeter, analyst at Hargreaves Lansdown, said: “The business is growing its online market share, and with 87% of revenue from existing customers, this loyalty will help Moonpig bring home some bacon, while investing to try to attract new business. .”
The MOON target price is 406.67p, which is 126% higher than the current level.
Wickes Group Shares
Wickes Group is a retailer supplying home improvement and gardening products. The company has over 200 stores in the UK and is known for its DIY range.
The company, in its recently released business update for the six months ended July, reported a 5.4% increase in like-for-like sales. On the other hand, it is facing headwinds with rising inflation and has also lowered its full year profit forecast to £72-82m.
The company is confident in the growth of its local business, where it holds a leading position. Also, with the boom in home building in the UK, companies like Wickes will benefit.
The the stock fell nearly 50% over the past year, but analysts haven’t lost hope and are maintaining a Strong Buy rating. The Wickes Group Price Target is 236.6p, which has an upside potential of 102%.
Wickes is also a great addition to passive income because it carries a dividend yield of 9.18% compared to the industry average of 1.65%.