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Sunday share tips: Octopus Renewables Infrastructure Trust, Bioventix

Sun, 19th Nov 2023 21:24

(Sharecast News) - The Financial Mail on Sunday's Midas column tipped the Octopus Renewables Infrastructure Trust to readers, pointing out its 7% dividend yield and the current valuation of its shares.

It also highlighted its diversification, between investments in wind and power but also battery storage and green hydrogen.

That, the tipster said, was designed to provide investors with long-term growth and attractive income.

Its dividend payouts were quarterly and had nearly doubled since Orit floated in 2019, rising consistently in line with inflation.

The share price on the other hand had drifted lower after listing at 100p and then reaching 118p in the spring of 2022.

Midas attributed that to higher interest rates, as well as "general apathy" towards renewable energy stocks.

Nonetheless, in the aggregate its projects were valued at 107p per share or £604m, against a share price of 90.5p.

"Octopus Renewables Infrastructure Trust is in the business of doing good. But the group is equally committed to increasing the value of its assets and providing investors with rising dividends," Midas said.

"As hundreds of policy wonks gather in Dubai over the coming weeks, Orit is turning words into action. At 90.5p, the shares are a buy."

The Sunday Times's Lucy Tobin recommended shares of Bioventix, a biotechnology company focused on 'high affinity' sheep monoclonal antibodies.

Those, she explained were used to conduct blood tests for everything from vitamin D deficiency and fertility to thyroid function or drug abuse.

And despite the risks inherent in backing a tiddler testing firm, the time lag between the development of SMAs and revenues of about five years provided good visibility.

The company was also working on a range of specific antibody projects paid for by pharmaceutical groups, which absorbed the risk.

Its pipeline of future opportunities included promising work on screening candidates for some of the new treatments coming out for Alzheimer's and to keep tabs on disease progression.

"Medical trends towards more complex screening are accelerating; buy Bioventix."

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