This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Technical Observations – For
Technical Observations – Against
Share buyback extended by up to $400m (6 Nov). Micro Focus sees FY18 trading in line with views (5 Nov). Analysts at Numis says Micro Focus 2018 EPS could beat expectations (5 Nov). Solid 5.75% dividend.
Risks to Micro Focus shares include; significant GBP strength reducing the value of USD dividends; A tech sector downturn that drags even the more defensive types with it, Brexit and, of course, broker downgrades.
Brokers/analysts are bullish on the shares with only 25% suggesting Sell. This is supported by 50% of broker price targets suggesting upside from current levels. The consensus target of 1446p is below the current share price but the shares price breakout could attract upgrades to both ratings and targets
Next Event: Interim Results, early Jan
Latest Broker 12-Month Consensus: 50% Buy, 25% Hold, 25% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr | |
| Perf % | 17.8 | 8.1 | 21.7 | 12.3 | -44.0 | -23.4 | 19.6 | 49.1 | 85.3 |
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Prepared by Michael van Dulken, Head of Research