This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Technical Observations – For
Technical Observations – Against
Attractive share price breakout, with opportunity to piggy-back momentum towards last June”s 261p record highs. Acquisition of GKN has been completed and the shares de-listed. Melrose has history in buying companies and improving them before selling them on. Promised to hold onto GKN for a few years. Shares rallied since 10 May trading update.
Consensus is very Bullish (90% say Buy), with 78% of brokers suggesting upside from current levels. Potential for more brokers to start covering the company (after GKN acquisition, and now that it is in UK 100 ), with positive ratings and targets that could boost existing share price momentum. Note the consensus price target is bang in-line with record highs, justifying our short term trade objective. Deutsche Bank upgraded to Buy and upped its target to 275p early May.
Next Event: Unconfirmed.
Latest Broker 12-Month Consensus: 91% Buy, 9% Hold, 0% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| Share | 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr |
| Perf % | 5.7 | 6.8 | 8.0 | 19.7 | 7.0 | 233 | 388 | 333 | 292 |
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