Brokers note manipulation23 Aug 2024 11:46
So a brokers not comes out and of course investor react - usually I find the contrarian view works best.
What do they know today, or it is pure manipulation for a corporate client? or and how did they get it so wrong at 770p?
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Melrose Industries PLC (LSE:MRO, OTC:MLSPF) fell over 6% on Friday to top the FTSE 100's fallers after facing a double downgrade from UBS analysts.
The defence firm’s rating was slashed from a ‘buy’ to a ‘sell’ by UBS, while Melrose’s share price target was wound down from 770p to 400p.
UBS said this was due to the company’s revenue and risk-sharing partnership (RRSP) portfolio being significantly overvalued.
This sees the company share in aftermarket profits with the likes of airlines and other companies following engine sales.
According the UBS, the portfolio is worth £2.8 billion and less than half the £5.7 billion value cited by the company’s management.
Melrose fell 6.1% to 479.97p on the downgrade