Melrose Industries PLC (LSE:MRO, OTC:MLSPF) has been picked out by CitiGroup analysts for drawing attention among US investors as preference sways towards the aerospace engine aftermarket.
Given expectations around strong mid-term free cash flow, Citi said Melrose had attracted the most interest among investors during recent meetings in New York.
“We received particular interest in company mid-term targets which we expect to be delivered in March,” the bank said in a note.
Melrose had received renewed backing from Citi after providing an explainer on its risk and revenue-sharing partnerships with engine manufacturers late last year.
Some 17 of Melrose’s 19 deals were now cash-generating, the company said at the time, relating to the likes of engine mounts and cases.
Citi estimated Melrose’s free cash flow could sit in the region of £450 million to £550 million come 2028 in response, against consensus for £320 million to £420 million at the time.
Analysts also pointed to engine maker Safran and expectations of “significantly stronger” mid-term revenue growth than consensus and company guidance.
Melrose shares climbed 2.5% to 582p on Monday.