Morrison Share Price Forecast July 2021 – Time to Buy MRW?
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Shares of Morrison Supermarkets plc(LSE: MRW) are recently in the spotlight after the grocer rebuffed a significantly undervalued offer from Clayton Dubilier & Rice (CDR) at a 230p-per-share rate. The company will consider offers around the 270p share mark according to JO Hambro Capital, the 10th biggest shareholder with a stake of 3%. Investors are asking whether this the right time to pick up Morrison Supermarkets PLC share at the moment.
Morrisons Shares – Technical Analysis
From the financial statement released by Morrison Supermarkets PLC, we get a complete idea about the company which boasts a market cap of £5.666 billion. Revenues for 2020 are at £17.60 billion at a profit margin of 0.55%. MRW shares are currently valued at £240.7 at the time of writing, with a downtrend of -2.50%.
The technical analysis for Morrison Supermarkets PLC reveals that Oscillators such as Ultimate Oscillator (7, 14, 28)(55.8), Average Directional Index (14)(45.5) and Bull Bear Power(42.3) are showing neutral. On the other hand, Moving averages like Exponential Moving Average (20)(213.5) and Simple Moving Average (20)(204.2) point towards buying.
67% of all retail investor accounts lose money when trading CFDs with this provider.
Recent Developments
As mentioned before, Morrison Supermarkets PLC grabbed the headline after a failed buyout offer from Clayton Dubilier & Rice which made a £5.5 billion offer. Even though there was a jump in share prices, the company rejected that offer. This shows that the management values the company higher, giving confidence to investors. Another reason for investors to rejoice is the fact that a private equity firm approached the company in the first place. So investors still have a chance even after the bid was rejected as there are chances for other investment firms to make offers. New offers have to be higher than the rejected offer of 230p, causing share prices to jump higher in future.
Should You Buy Morrisons Shares?
Trying to forecast the MRW share price involves a lot of assumptions. One assumption is that counteroffers will be made in the future at a higher valuation. So you can buy the shares for an expected future jump in price. But simply buying in the hope of a bid doesn’t mean anything if one doesn’t look at the company’s long term prospects.
If a future bid does not come, the share price will remain at the 230 p market. The company is performing well according to their trading update for Q1, where it recorded a sales increase of 5.3%. But the market will be waiting for better than expected results in the near future. These results would have the tough task of beating the already optimistic outlook of the market to push share prices further up.
Buy Morrisons Shares at eToro, the World’s #1 trading platform!
