One to Watch

Greene King416p +10.6pScotsman says BUY

GREENE King operates managed, tenanted and leased pubs, and brews and distributes a range of ales and beers including Belhaven Best, Greene King IPA and Old Speckled Hen. It also owns Loch Fyne Restaurants.

With the proceeds from its rights issue last year, the group committed itself to making acquisitions on a "slowly but surely" basis as opportunities arose from the sale of distressed assets of competitors. Significant improvement has been reported in sales from all 34 pubs acquired so far this year, and it continues to maintain a high level of investment in its pub estate, combined with a focus on cost control.

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Greene King has a record of turning around under-performing pubs and so we anticipate good upside potential. The risks facing the group are similar to all firms on the receiving end of discretionary consumer spending, and while it has no refinancing needs before April 2012, a significant rise in interest rates would have a negative impact on the business. However, the shares provide an attractive yield of more than 5 per cent.

• The value of your investment could fall and you may get back less than you invested. You should take professional advice if you have any doubt about the suitability of this company for your portfolio.

BROKER SNAPS

Carnival

2,580p -13p

Broker says BUY

NUMIS has reiterated its "buy" rating on Carnival ahead of the cruise operator's interim results on Tuesday. The broker said: "You get exposure to the US consumer, material dollar exposure, a clearly mapped-out route for growth, a solid balance sheet and dividend yield rising to over 4 per cent"

WS Atkins

700p +4.5p

Broker says HOLD

FOLLOWING Thursday's full-year results from WS Atkins, Citi has kept its "hold" rating. The broker said: "Atkins' stock has had a good run into these results and we retain our 'hold' stance, seeing the shares as fair value. Although the company has net cash of circa 260 million, the pension deficit of 440m gross does place a drag on the stock."

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