Melrose Industries PLC

MRO: XLON (GBR)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	GBX 941.00	Chhs	Nhbyknp

Melrose Industries: We Initiate Coverage With a Wide Moat and Fair Value of GBX 870; Shares Undervalued

Loredana Muharremi

Apr 16, 2024

We are initiating coverage of Melrose Industries with a wide moat and fair value estimate of GBX 870 per share, backed by anticipated growth in flight hours largely fueled by leisure travel and alongside a surge in defense expenditure in response to escalating global security concerns. The valuation is further bolstered by a strategic shift in product mix toward higher-margin aftermarket revenue.

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