Schroders tips Boots as undervalued

Schroders believes there is significant upside potential in several undervalued UK stocks held in it...

Schroders believes there is significant upside potential in several undervalued UK stocks held in its income funds. Ian McVeigh, who runs the Schroder Income unit trust and Schroder Income Growth investment trust, said that stocks such as Boots and the door and window manufacturer Heywood Williams have been undervalued by the market in the flight to high growth stocks. On a discounted cashflow basis the stocks in Schroder Income are at a discount of 97%, he added. He said: "Companies with strong cashflow have been poor performers and it has led to anomalies across the market. When sentime...