BofA Merrill Lynch upgrades Melrose to 'buy'

Bank of America Merrill Lynch upgraded Melrose on Tuesday to ‘buy’ from ‘neutral’ and lifted the price target to 181p from 160p.

The bank pointed to an improved outlook for the company’s aerospace business.

BofA said it now has more confidence in Melrose’s mid-term target of 14% Ebit margins.

It also said that widebody production increases at Airbus, improving engine production rates and aftermarket momentum support the company’s growth outlook.

At 1405 GMT, the shares were up 3.8% at 162.80p.