BofA Backs Melrose Industries with Shares Near Year Low

Bank of America (BofA) has reiterated its 'buy' rating on Melrose Industries PLC (LSE:MRO, OTC:MLSPF), the FTSE 100 aerospace group, with a 720p price target. Analysts argue the shares look cheap as they trade close to their lowest level this year.

Rating Change

BofA did not change its rating; it reaffirmed 'buy' with a 720p target. The stock currently trades well below this level, suggesting upside potential.

Analyst Rationale

Analysts believe Melrose, which owns the GKN Aerospace engineering business, is undervalued. The recent weakness has made the stock attractive for long-term investors.

Context

The stock is trading near its 2026 low, pressured by broader aerospace sector headwinds. It is unclear if other analysts share BofA's view.

What to Make of It

BofA's reaffirmation could provide a boost, but investors should monitor actual performance and sector developments before deciding.