Kepler downgrades Melrose Industries to ‘hold’.
Kepler Cheuvreux downgraded Melrose Industries to ‘hold’ from ‘buy’ on Thursday, as it said there is no longer enough upside to justify the ‘buy’ rating.
Source: Sharecast
Kepler said it expects "no miracles" on sales and margins when the company reports first-half results on 1 August.
It said free cash flow is set to remain negative at -€70-100m, given the continued cash drain from restructuring, GTF recall costs, and variable considerations.
"Meanwhile, we cut our estimates to reflect US dollar weakness and higher interest costs, expecting pending tariff costs of £10-15m to be absorbed by underlying Engines margin gains," it said.
Kepler said its target price of 540p still aims for a 6% free cash flow yield on the group’s 2029 £0.6bn FCF target.
At 1550 BST, the shares were down 1.3% at 513.40p.
Halifax is not responsible for the content and accuracy of the Markets News articles. We may not share the views of the author. Understand the risks, please remember the value of your investment can go down as well as up and you may not get back the full amount you invest. We don't provide advice so if you are in any doubt about buying and selling shares or making your own investment decisions we recommend you seek advice from a suitably qualified Financial Advisor. Past performance is not a guide to future performance.
