Melrose Industries (MRO)

Sector:

Manufacturing

Index:

FTSE 100

673.00p
   
  • Change Today:
      2.40p
  • 52 Week High: 679.40
  • 52 Week Low: 403.80
  • Currency: UK Pounds
  • Shares Issued: 1,316.70m
  • Volume: 4,384,532
  • Market Cap: £8,861m
  • RiskGrade: 135

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.

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

Note 2: RiskGrade figures are provided by RiskMetrics.

 

MRO Market Data

Currency UK Pounds
Share Price 673.00p
Change Today 2.40p
% Change 0.36 %
52 Week High 679.40
52 Week Low 403.80
Volume 4,384,532
Shares Issued 1,316.70m
Market Cap £8,861m
RiskGrade 135

MRO Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
85.54% below the market average85.54% below the market average85.54% below the market average85.54% below the market average85.54% below the market average
42.86% below the sector average42.86% below the sector average42.86% below the sector average42.86% below the sector average42.86% below the sector average
Price Trend
93.60% above the market average93.60% above the market average93.60% above the market average93.60% above the market average93.60% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Income
8.84% below the market average8.84% below the market average8.84% below the market average8.84% below the market average8.84% below the market average
9.09% below the sector average9.09% below the sector average9.09% below the sector average9.09% below the sector average9.09% below the sector average
Growth
8.23% above the market average8.23% above the market average8.23% above the market average8.23% above the market average8.23% above the market average
14.29% below the sector average14.29% below the sector average14.29% below the sector average14.29% below the sector average14.29% below the sector average

MRO Dividends

  Latest Previous
  Final Interim
Ex-Div 28-Mar-24 14-Sep-23
Paid 08-May-24 20-Oct-23
Amount 3.50p 1.50p

Trades for 28-Mar-2024

Time Volume / Share Price
16:57 975 @ 673.98p
16:52 208,753 @ 674.80p
16:35 1,411,615 @ 673.00p
16:35 1,208 @ 673.00p
16:35 4,069 @ 673.00p

MRO Key Personnel

CEO Simon Antony Peckham
CEO Peter Dilnot
Finance Director Matthew Gregory

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