Market's view on Mears

Published on April 2024

  • The CFO’s recent stock purchase is viewed positively.
  • Concerns are expressed that following the completion of buybacks, the share price appears weak.
  • Expectations exist that continued share buybacks should help increase the stock price.
  • Speculation exists about potential stock price movement, with predictions of an increase to 400p if it breaks 370p.
  • The company’s substantial cash pile and increased dividends are seen as attractors, potentially making it a target for acquisition.
  • A notable error in a trading statement was identified, which listed share purchases instead of the usual content, raising questions among stock watchers.
  • Confusion arises due to a trading statement error, leading to direct engagement with the company for clarification.
  • The timing for the next trading update is pinpointed to either the 26th or 29th of April.
  • Discussions about the company’s results are anticipated, with stock watchers closely monitoring the release date.
  • Positive sentiment is shared regarding the company’s stock potential, with a price target of 400p suggested based on current evaluation.
  • The graph’s positive trajectory supports optimism for future stock performance.
  • Discussion revolves around the significance of a £20m buyback, with predictions it will positively impact the stock price.
  • Potential for the stock price to drop to the 315-320p range is identified as a good entry point for investment.
  • Forecasts suggest an enterprise value of £390m moving forward, with a potentially conservative share price target of 500p.
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