- Melrose Industries
- 04 June 2024 15:05:00
Source: Sharecast
Stifel, which kept its ‘buy’ rating on the shares, said they have lagged the company’s Aero engine peers over recent weeks, partly due to the perceived overhang of the LTIP crystallisation and the consequent issue of stock to former and current management.
"With the group now opting to cash-settle the portion of the payout required to fund tax costs, and some of the remaining shares subject to lock-up, dilution is less than we had anticipated, and there seems little risk of material flowback," Stifel said.
"Meanwhile, the Q1 trading update, and commentary from peers, suggests that trading remains robust, with strong demand for high-margin Aero aftermarket parts and services, through RRSPs and direct."
Stifel raised its headline profit forecast for the year by around £11m and reduced its estimated average shares in issue. In combination these two changes increase its estimated 2024 earnings per share by around 2%.
At 1500 BST, the shares were up 3.3% at 634.60p.