Friday newspaper share tips: Merlin Entertainments, RPC Group

Things are still looking up for Merlin Entertainments longer-term, so while the prospects for organic growth from here might be more pedestrian, The Times's Tempus thinks investors should stay on for the ride.

In particular, the operations of its Midway attractions unit, which operates Madame Tussauds and Sealife, including in Istanbul, Munich and Orlando, were hit by terrorism fears.

But with time such fears are likely to prove transitory.

The lagged effect from the pound's fall in value also has yet to kick-in too, Tempus suggested.

Nonetheless, the company's investments in Japan and Korea mean that extra returns to investors are off the table and trading on 21 times this year's earnings the stock is "pricey", Tempus said, advising 'hold' on the shares.

RPC Group is becoming a bit too predictable, informing markets yet again at the half-year stage that revenues and profits would be "significantly ahead" of last time, thanks to organic growth and synergies from acquisitions.

Indeed, the expected synergies from the purchase of Promens, Global Closure Systems and British Polythene Industries may have more upside to them, the manufacturer of plastic packaging said.

At 17 times' earnings the valuation multiple is "quite high" but there is no sign of a slowdown, rather the opposite, according to Tempus.

WS Atkins was a different story, Tempus said, pointing to slowing business in the Middle East and in the States.

So 'take profits' was the advise from the tipster.