JP Morgan labels Melrose a top pick for 2024

(Sharecast News) - JP Morgan has placed Melrose on 'positive catalyst watch' ahead of the British manufacturing group's full-year results, saying it expects "good news to keep coming". The bank labelled the stock a top pick for 2024, helping shares higher on Monday - 1.7% at 566.8p on the day.

"Given the momentum in the business seen through 2023, we expect Melrose to meet the top-end of the 2023 guidance (at least) and raise the 2024 guidance to ahead of consensus expectations at the prelims," JP Morgan said ahead of the results due on 7 March.

In November, the company upped its adjusted operating profit estimates by 7% to £400-410m, as a result of a stronger improvement in underlying margins.

"Melrose remains a key pick for us in 2024: an aerospace pure-play with a credible margin story, further upside to forecasts and a sizeable buy-back supporting the shares," JP Morgan said.

The bank has a 620p target price for the stock.