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Melrose gains after JP Morgan raises price target

Published 11/26/2024, 05:48 PM
Updated 11/26/2024, 09:18 PM
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Investing.com -- Shares of Melrose Industries (LON:MRON) were higher on Tuesday, after analysts at JP Morgan raised their price target on the stock. 

At 8:05 am (0105 GMT), Melrose Industries was trading 5.7% higher at £557.

Analysts at J.P Morgan assigned a new SOTP-based December 2026 price target of 850p, indicating a 60% upside, in a note dated Tuesday.

Melrose was placed on Positive Catalyst Watch ahead of its FY24 results on March 6th, 2025, where medium-term guidance is anticipated.

J.P Morgan has trimmed Melrose's earnings per share for 2024-25 by 3% per annum due to recent industry and macroeconomic developments, but new long-term earnings estimates, extended through 2030, project strong free cash flow growth beginning in 2026.

Meanwhile, in a stock exchange filing on Tuesday, Melrose said it had purchased a total of 38,000 ordinary shares on November 25, through J.P. Morgan Securities. 

The shares were acquired at prices ranging between 521.8p and 533p, with a weighted average price of 527.0193p.

The company clarified its intention to hold these repurchased shares in treasury, reducing the total number of shares in circulation. 

After the transaction, Melrose reported having 64,305,366 ordinary shares in treasury, while the total issued share count remained unaffected as treasury shares are excluded from the calculation of shares in public hands.

 

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