Killik highlights buying opportunity at Melrose

13th May 2014 12:18

Killik & Co has highlighted a buying opportunity for investors at Melrose after a 'reassuring update' from the industrial conglomerate on Tuesday.The company said that trading in the first quarter was in line with full-year expectations despite mixed end markets and increasing currency headwinds."We remain positive on the company, which plays well to the themes of smart technology and energy security, and offers exposure to an attractive 'buy, improve and sell' strategy," the broker said. "Following a period of share price weakness since the full-year results in March, we believe the current level is an attractive point to buy the shares."In response to Melrose's comments about finding a "suitable and value enhancing acquisition", Killik said it would be supportive of the 'right' purchase given management's track record of finding good-quality businesses that are underperforming their potential. The broker said that a deal could be a potential catalyst for further share price appreciation.The stock was 1.7% higher at 292.2p by 12:32.BC