Healthy Air Traffic And Improving Aftermarket Outlook Haven't Helped Melrose All That Much
2025-02-19 09:32:19 ET
Summary
- While air traffic and aftermarket demand remain strong, Melrose’s stock performance has lagged behind engine suppliers like Rolls-Royce and GE.
- With the aftermarket business likely to grow from 40% to nearly two-thirds of profits by 2030, Melrose’s focus on engine maintenance and repair positions it for strong margin expansion.
- With shares trading about 10-15% below estimated value, Melrose could see renewed investor interest if management delivers stronger guidance with its upcoming earnings release.
Despite a pretty constructive environment, shares of Melrose ( OTCPK:MLSPF ) (MRO.L) haven’t performed especially well since my last update . Up about 5%, Melrose has done okay relative to some other suppliers like Hexcel ( HXL ), Moog (MOG-A) (MOG-B), Thales ( OTCPK:THLLY ), and Woodward ( WWD ), but engine suppliers better leveraged to improving outlooks for deliveries from the major aircraft companies have shot ahead, with MTU Aero Engines ( OTCPK:MTUAF ), Rolls Royce ( OTCPK:RYCEY ), GE ( GE ), and Safran ( OTCPK:SAFRY ) have shot ahead with those stocks up 20% to 50% over the same time....
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Healthy Air Traffic And Improving Aftermarket Outlook Haven't Helped Melrose All That Much
NASDAQ: MLSPF
MLSPF Trading
0.69% G/L:
$7.25 Last:
4,285 Volume:
$7.0739 Open:
