This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Observations – For
Observations – Against
Bullish breakout above rising support dating back to December 2017. Trading within a range in 2018 and currently on a leg up. Healthy dividend yield of 4.4%. Global trade confrontation could hurt businesses, rendering them cheaper and providing Melrose with more bargain opportunities.
Broker consensus is positively biased, with 91% of analysts saying “Buy“, 9% neutral and none saying “Sell”. The breakout could induce the remainder of analysts sitting on the fence to upgrade their ratings. 88% of broker targets suggest an upside from current price levels in the medium term. Average 12-month target price of 264p is well-above out short-term trading goal.
Risk to MRO shares include uncertainty regarding post-Brexit movement of capital, which could impact company’s core business of buying and selling troubled businesses. Disappointing trading update or poor FY results in September could negatively impact the share price. FX headwinds could make overseas acquisitions more expensive.
Next Event: Interim Results, 6 Sep
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 % | 5.6 | -8.3 | -2.2 | -3.5 | -7.7 | 87.5 | 354.1 | 318.1 | 237.1 |
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Prepared by Michael van Dulken, Head of Research