There's a story on Hargreaves Lansdown, "Sunday share tips: Flybe, Meggitt" [link] haven't bought, because I don't see much upside beyond the stock recovering to previous levels. Apart from energy, it seems like a fairly safe business, so long as a vital part doesn't go horribly wrong. I don't claim to know much about MGGT though.
Topped Up Topped up again as i thought the results were fair. I am a little unsure as to why the shares were marked down so much. Sterling weakening and the USA military spending should have been reason enough to hold the price. Add in reduced debt and improving energy markets and it could be expected to have risen a little. The new accounting rules are going to make the numbers look worse nest year, but over time that should even out.
No comments Very quiet on this board today and many days . Stunned by the drop in sp.The only comment I can find is from Panmure Gordon Cazenove in the David Buik iii post thinks Meggitt is not what it should be Helpful or what?
NEW ARTICLE: David Buik's stocks to follow in 2018 "Leading market commentator David Buik tells interactive investor who he thinks the winners will be this year and where the FTSE 100 will finish 2018.Which blue chip shares does Panmure Gordon think will be winners in 2018?They're not as obvious ..."[link]
Re: update As suspected, the predicted rise in business is now expected a little later than forecast. Crucially it is still expected, and if the market sees it this way the price will stabilise. Moving forward I intend to hold as it is not overpriced at present.
Re: update IF IF you are right then i sincerely hope that LSE launch an enquiry into the SP over past days, as its quite clear that any 'bad news' was available to at least some players!!
update Tomorrows update should shed some light on the recent price pull back. I fear the news will not be too great and that growth is slower coming than anticipated. (Possibly the management were too bullish in the last update). I am happy to hold and wait as I think the aero business should provide a good area for growth over the coming years and will be free from the Brexit shennanigans.
Jefferies From Citywire (Thursday):"Jefferies: more to come from Meggitt in next yearJefferies has upgraded Meggitt (MGGT) as it expects the global engineering group to prove it has rejuvenated in the next 12 months. Analyst Sandy Morris upgraded his recommendation from hold to buy and raised his target price from 500p to 600p. The shares rose 2.8% to 511.3p yesterday.Meggitts rejuvenation has taken a lot more than a good nights sleep, he said. The process will not be complete for some years, but with an unprecedented number of parts and systems won on new aircraft/engine programmes, its efficacy should be apparent within 12 months.He added that the years of investment ahead of production have required endurance we have bided our time until convinced tangible rewards should be evident within our 12-month horizon."
BofA- Merrill Lynch From ADVFN on 12/04:"Engineer Meggitt got a boost on Wednesday as Bank of America Merrill Lynch upgraded the stock to 'buy' from 'neutral' and lifted the price target to 530p from 490p.The bank said it sees an attractive cash improvement story through to 2020, driven by gradual margin improvement and stabilisation in fixed/tangible investment.Merrill said it sees around £304m of free cash flow to equity in 2020, which would correspond to an 8.7% free cash flow yield, which it reckons is attractive versus the civil aerospace peer group average of 7% in 2020.The bank also pointed to the fact that aftermarket growth is improving, driving the potential for a re-rating."Following years of weak and volatile aftermarket growth, Meggitt introduced the Customer Services and Support (CSS) organisation in 2015. Management highlighted that this contributed positively to aftermarket growth for FY16, seeing 5.4% aftermarket growth versus market growth of 3.4%, after making good progress in limiting the headwind from surplus parts and increasing share of Maintenance, Repair and Overhaul activities."Boa ML said if the new organization can continue to drive strong aftermarket performance, as demonstrated in 2015, versus years of volatility, this could drive a re-rating in the mid-term."nk
Sale Not too impressed by that. Here's part of what QinetiQ had to say about it:-"Acquisition of a highly cash generative and growing business"From Meggitt's point of view:-"This transaction is consistent with Meggitt's strategy to focus on businesses of scale in attractive markets where our leading positions offer greater potential for growth and operational efficiencies."I hope so, but we'll have to wait and see what they do with the money, other than to reduce the pension deficit.Meggitt certainly have fingers in lots of pies.
NEW ARTICLE: Senior dives as warning lights flash " It's been a grim couple of days for Britain's exporting engineers. A weak pound has proved a super tailwind since the Brexit vote, but yesterday we heard that LSE:LRD:Laird had run into problems with NASDAQ:AAPL:Apple, and now two of our most ..."[link]
supply chain problems for PurePower "Meggitt is now facing additional headwinds in its Civil OE business in addition to the loss of market share and falling margins evident in its H1/16 results in its newly acquired advance composites businesses. Bombardiers warning on CSeries deliveries on Tuesday suggests that we may have underestimated the supply chain problems affecting PurePower. This could not only impact Meggitts ability to deliver its low single digit organic growth target for the 2016, but may also impact margins due to delays, complexity of the technologies and product modifications. We have also taken this opportunity to restate our forecasts based on forthcoming accounting changes in 2018 whereby programme participation costs are no longer expected be capitalised. This reduces our 2016-18 EPS forecasts by 8-11%."Panmure update on Research Tree
Re: Rise? Just in case anybody missed it:-"P Morgan Cazenove has removed aerospace and defence group Meggitt (LON:MGGT) from its list of stocks to avoid and upgraded its recommendation to 'neutral' (from 'underweight') on news of activist shareholder involvement.The City heavyweight said: "This morning a well-known activist investor declared it had acquired a stake of just over 5% in MGGT. We upgrade the stock to Neutral and increase our multiples-based Dec 16 price target to 445p from 395p, reflecting the higher possibility of either: (1) internal changes in MGGT's strategy; or (2) M&A activity."So that's 2 who think it's overvalued, and 1 who thinks it's about right. Wotever. What am I saying, I should be thinking about whether it's worth doing a spot of trading, never mind "wotever"!
Re: Rise? "Anyone like to comment on where its going?"I'll have a bash, PP. I don't believe that Singer and co. think that Meggitt is massively undervalued as it is; so presumably they see value elsewhere. I'd say that they would like to see it broken up. How that happens I've little idea. May be they want to attract private equity to do that.That being the case, I don't see the sp changing much from where it is now - in the short term.Actually, that's prompted me to look at its net assets.Btw, don't read too much into what i write, I'm merely an ancient mariner. See ya.
Re: Rise? Lots of Broker Activity after the interims but no real concensus, no one saying BUY or Sell! Only Morgan Stanley and Berenberg come close with there target prices on whats happened today. Brokers Price Target Comment Date Brokers Original New 03-Aug Credit Suisse 375 390 Underperform Barclays 475 520 Overweight Deutche 376 370 Hold JP Morgan 385 395 Underweight Exane BNP - 430 Neutral 04-Aug Morgan Stanley 435 450 Equal weight 08-Aug Berenberg 450 440 Hold (Downgrade)RNS Notified Days Hi Low 03-Aug Norges Bank 425 397 3.2% shares 03-Aug Elliott International 425 397 5.22% CFD'sAnyone like to comment on where its going?