Sunday share tips: Raspberry Pi, Sanderson Design Group

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Sharecast News | 02 Jun, 2024

The Financial Mail on Sunday's Midas column touted shares of Raspberry Pi ahead of its upcoming flotation.

It argued that they might prove an "exciting" component of investors' portfolios and were "well worth a look".

"Time to recognise the value of UK businesses – and invest in firms that will deliver growth across the country," the tipster said.

The computer manufacturer's boss reckoned the company's addressable market to be over $21bn in size, versus Raspberry's $266m of sales in 2023.

The computers were not only less expensive to make, the desktop models used 85% less plastic than traditional ones and consumed only a tenth as much electricity.

Information about its upcoming initial public offering was expected within days.

The Sunday Times's Lucy Tobin says readers should buy shares of Sanderson Design Group, arguing that the company had truly remodelled itself.

Formerly known as Walker Greenbank, the company's shares had been dragged lower by the slowdown in the UK housing market and elevated inflation.

And the company's chairman was expecting trading conditions to remain challenging, due to a lack of confidence among consumers.

However, in recent months Sanderson had reduced inventories, increased its margins and pocketed record licensing revenues.

Tobin also noted "strong" growth in the States, the company's second-largest market.

As well, analysts at Investec were anticipating that the impact of strong product launches would make itself felt in 2025.

Furthermore, the balance sheet was "solid", the shares' valuation well off their historical levels and falling inflation together with greater consumer confidence after the elections should do the same, she argued.

"This business has successfully remodelled itself, rather than papered over the cracks. Buy."

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