Peel Hunt Reaffirms "Buy" Rating for Melrose Industries (LON:MRO)

Key Points

• Peel Hunt has reiterated a "Buy" rating for Melrose Industries (LON:MRO), setting a target price of GBX 750 ($9.96), indicating a 38.04% upside potential from the current share price.
• The stock currently has a consensus rating of "Moderate Buy" from analysts, with additional ratings including "overweight" from JPMorgan Chase & Co., and "outperform" from Royal Bank Of Canada.
• Melrose Industries recently reported a negative net margin of 1.13% and will potentially post an earnings per share (EPS) of 33.97 for this fiscal year, indicating possible challenges ahead.

Melrose Industries (LON:MRO - Get Free Report)'s stock had its "buy" rating restated by equities research analysts at Peel Hunt in a research note issued to investors on Friday, Marketbeat reports. They presently have a GBX 750 ($9.96) price objective on the stock. Peel Hunt's target price indicates a potential upside of 38.04% from the stock's current price.

MRO has been the topic of several other reports. JPMorgan Chase & Co. reaffirmed an "overweight" rating and issued a GBX 600 ($7.97) price objective on shares of Melrose Industries in a research report on Wednesday, July 2nd. Royal Bank Of Canada reiterated an "outperform" rating and issued a GBX 650 ($8.63) price target on shares of Melrose Industries in a research note on Friday. Two investment analysts have rated the stock with a hold rating and three have assigned a buy rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of GBX 612 ($8.13).

Melrose Industries Price Performance

Shares of MRO stock opened at GBX 543.31 ($7.21) on Friday. The firm's 50 day moving average price is GBX 505.55 and its two-hundred day moving average price is GBX 513.89. The stock has a market cap of £7.02 billion, a PE ratio of -183.75, a PEG ratio of 0.48 and a beta of 1.51. Melrose Industries has a 52-week low of GBX 376 ($4.99) and a 52-week high of GBX 682.60 ($9.06). The company has a debt-to-equity ratio of 44.03, a quick ratio of 0.45 and a current ratio of 0.86.

Melrose Industries (LON:MRO - Get Free Report) last announced its quarterly earnings results on Friday, August 1st. The company reported GBX 15.20 ($0.20) earnings per share for the quarter. Melrose Industries had a negative net margin of 1.13% and a negative return on equity of 1.18%. As a group, analysts forecast that Melrose Industries will post 33.9741641 EPS for the current year.

Insider Buying and Selling at Melrose Industries

In related news, insider Alison Goligher bought 20,000 shares of Melrose Industries stock in a transaction that occurred on Friday, May 23rd. The stock was acquired at an average price of GBX 462 ($6.13) per share, with a total value of £92,400 ($122,692.87). 1.00% of the stock is owned by corporate insiders.

About Melrose Industries

Melrose Industries PLC, together with its subsidiaries, provides aerospace components and systems to civil and defence markets in the United Kingdom, rest of Europe, North America, and internationally. The company operates through two segments, Engines and Structures. The Engines segment offers structural engineered components; parts repair; and commercial and aftermarket contracts to engines original equipment manufacturers.

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