Meggitt (MGGT LN, N – 446p, 445p) (David H Perry, CFA)
Upgrade to Neutral on news of activist shareholder involvement
Yesterday 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. Table 1 shows how we derive our new price target.