Trending tickers: Melrose

British engineer Melrose Industries has seen its share price climb after earning a price target raise and upgraded to ‘Buy’ rating from Merrill Lynch.

Analysts raised their target price for the stock to 181.0p from 160.0p.

The US bank pointed to an improved outlook for the company's aerospace business and said it now has more confidence in Melrose's mid-term target of 14% EBIT margins.

Read more: FTSE 100 in the red ahead of Bank of England decision

Melrose is shifting focus to aerospace, serving companies such as Airbus and Rolls-Royce, as it plans to spin off its GKN automotive arm and a smaller powder metallurgy division this year.

The British asset-management multinational has been under pressure since reporting a 14% profit slump in recent weeks and was leading losses across the FTSE 100 this Thursday, falling almost 5%.

The London-based group said that profit before tax dropped to £723m in 2022 from £841m the year before.

Overall assets under management dropped 4% to £737.5bn from £766.7bn in 2021.

Read more: Trending tickers: Credit Suisse | Kingfisher | Fresnillo

The Schroders board recommended a final dividend of 15p per share, making the total dividend 21.5p per share.

British American Tobacco has been underperforming since JP Morgan adjusted its recommendation and switched from Buy to Neutral. Share price has plunged around 7% in the last three months.

The company is also facing pressure to move its primary listing to New York after a top-five shareholder said it “makes no sense” for the cigarette maker to remain on the UK stock market.

The 43% decline in net income over the past five years is also keeping investors at bay.

Download the Yahoo Finance app, available for Apple and Android.