Market's view on Midwich Group
Published on April 2024
- A stock watcher added shares at 418, regretting not having taken profits in the meantime.
- Positive financial results and a favourable outlook for 2024 were reported, with potential technical indicators suggesting a golden cross formation soon.
- The stock is described as undervalued with a good yield and growth potential, purchased at 340p by a watcher.
- Recent trading patterns suggest institutional activity with significant, unclear trades taking place.
- Berenberg provided a positive assessment despite lowering earnings forecasts, noting strong cash generation and confirming a ‘buy’ rating with a 710p target.
- Analysts from HSBC upgraded Midwich Group to ‘buy’ with a price target of 545 pence.
- An acquisition of prodyTel Distribution is expected to strengthen Midwich’s technology offerings and synergies, with upgraded profit forecasts for the coming years.
- The company’s managing director purchased shares worth nearly £200k, positively impacting the stock price.
- Commentary on historical trading success included a significant sell-off by an individual in September 2021, followed by minimal repurchase activity.
- General sentiment shows optimism due to recent momentum and breaking resistance levels, suggesting potential for further stock price increases.