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Prices & Quotes - UK Markets - Melrose Industries (MRO)

Risk Warning The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance.

Share Price:
Down 164.00p
Change Today:
-3.60p
Market Cap:
7,968m
Sector:
General Industrials

RBC reduces rating on Melrose to 'outperform', ups price target

By Abigail Townsend

Date: Thursday 28 Nov 2019

LONDON (ShareCast) - (Sharecast News) - RBC Capital Markets has nudged lower its rating on Melrose Industries following a recent strong run for the blue chip stock.
The bank downgraded its rating on the turnaround specialist to 'outperform' from 'top pick', but upped its target price to 265p from 245p.

It explained: "We continue to view Melrose shares as attractive into 2020, supported by a forecast 80bps of margin improvement, as end markets are more stable. Potential disposals could also be incremental to sentiment.

"With reduced implied upside following recent strong performance, we lower our rating to 'outperform'."

Melrose specialises in finding underperforming industrial businesses and turning them around before selling them on. Its largest acquisition, and most recent, was the industrial conglomerate GKN, which it acquired in 2018 through a particularly acrimonious 8bn hostile takeover.

RBC said: "[GKN] has perennially struggled to turn high market shares and top-line growth into margin improvements and cash generation through a combination of misaligned target setting and operational inefficiencies. We see these problems as similar to areas where we have seen Melrose management make major improvements in prior acquisitions."

RBC added it was possible Melrose could make around 5bn of disposals in the next 12-24 months.

As at 1430 GMT, shares in Melrose were trading more than 1% lower at 230.50p.

Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

MRO Market Data

Currency UK Pounds
Price 164.00p
Change Today -3.60p
52 Week High 248.50p
52 Week Low 74.36p
Volume 9,536,405
Shares Issued 4,858.25m
Market Cap 7,968m

Performance Indicators

Compare performance with the sector and the market.

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Price Trend
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Income
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Growth
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Price Chg 6m
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P/E
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PEG
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Dividend Yield
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EPS Growth
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Operating Margin
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What The Brokers Say

Strong Buy 10
Buy 0
Neutral 3
Sell 0
Strong Sell 1
Total 14
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

MRO Dividends

  Latest Previous
  Interim Final
Ex-Div 12-Sep-19 04-Apr-19
Paid 11-Oct-19 20-May-19
Amount 1.70p 3.05p

Trades for 04-Dec-2020

Time Volume / Share Price
16:42 450,000 @ 164.70p
16:35 3,805,087 @ 164.00p
16:29 287 @ 163.75p
16:29 3,814 @ 163.75p
16:29 1,500 @ 163.75p

MRO Key Personnel

CEO Simon Antony Peckham