Citi has updated its forecasts and repeated its 'buy' advice on shares in Melrose Industries PLC, interpreting any market weakness as an opportune moment for investors to purchase shares.
In the wake of the engineer's prelims, the American investment bank addressed key concerns from investors, reinforcing the belief that Melrose presented a strong performance and is on course to meet or surpass its financial guidance for 2025.
The analysis underscores Melrose's potential for robust cash generation throughout the decade, projecting an approximate £750 million in unlevered pre-tax free cash flow (FCF) by 2027.
Furthermore, Citi anticipates that the new management will develop a detailed mid-term strategic plan within the next 12 months, which is expected to serve as a significant catalyst for a positive adjustment in the company's stock price towards Citi's target price.
In afternoon trading the stock was flat at 619.6p.