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2 UK shares I’d buy in a Stocks and Shares ISA for the new bull market!

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I’m on the hunt for top UK shares to buy in 2021. Here are two I’m seriously thinking of adding to my Stocks and Shares ISA today.

In a nosedive

I don’t think Ryanair Holdings (LSE: RYA) is a UK share that’s for those of a nervous disposition. But it’s one I think could emerge as one of London’s hottest recovery plays in the new bull market.

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The Irish flyer’s share price has dropped sharply since the start of 2021. It’s down 13% as market makers have headed for the emergency exits. I think Ryanair’s fresh dive should come as no surprise amid a flurry of fresh Covid-19 travel rules. News that the UK is floating the idea of making foreign arrivals stay in quarantine hotels is one of the new dangers facing the airlines.

The risks to Ryanair’s profits in 2021 are considerable in my opinion. Covid-19 vaccines are being rolled out across the globe, sure. However, with authorities failing to get a grip on the health crisis, and new variants of the virus emerging, who knows when the business will get the bulk of its fleet off the ground again? I’d say problems concerning vaccine delivery in recent days offer another reason for the risk-averse to be concerned.

An airplane on a runway

Riding out the storm

Having said that, I don’t think Ryanair is in danger of going under like some of its rivals have. And as a long-term investor, I feel this provides me with an appetising buying opportunity. According to Morgan Stanley the business has almost 15 months’ worth of liquidity based on current run rates. I’m confident this should see it through the worst of the crisis.

Again, I’m someone who invests for the long term. I buy UK shares with a view to holding them for a decade or more. And so I’m not concerned by City forecasts that suggest Ryanair will record losses of 73 US cents per share this fiscal year (to March 2021). I’m encouraged by predictions that the Dublin firm will bounce back to record earnings of 56 cents a share in financial 2022.

Besides, I feel that Ryanair’s solid balance sheet will allow it to make the most of the eventual recovery. This doesn’t just include its chances to ramp up its operations swiftly as the fight against Covid-19 turns. As IAG’s takeover of Air Europa shows, the landscape will be ripe with exciting acquisition opportunities when the dust settles. I’d buy for the long term.

Another UK share on my radar

Before I go, I’d also like to quickly talk about Ten Entertainment Group. The tenpin bowling operator faces the same profit dangers as Ryanair in terms of Covid-19 restrictions. But this UK share is also in good financial health to help it navigate the crisis.

Indeed, recent government loans and changes to its revolving credit facility mean that the leisure giant has enough liquidity to last “well into 2022,” it says. The bowling craze in Britain is far from over and I think profits from Ten Entertainment’s high-margin and market-leading centres could roll in again when lockdowns are eventually lifted.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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