BNP Paribas upgrades Melrose stock to Neutral with 510 GBp target

Published on 10/08/2026 at 16:50 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

BNP Paribas set a GBp 510.00 target after moving to Neutral on October 7, 2026. Melrose stock costs EUR 5.23 on October 8, 2026 versus EUR 5.38.

Key points in brief

BNP Paribas upgraded Melrose from Underperform to Neutral and set a GBp 510.00 price target on October 7, 2026.
Melrose reported GBP 1,873 million revenue and an 18.50 percent adjusted operating margin for the first half of 2026.
The stock was trading at EUR 5.23 at Lang & Schwarz on October 8, 2026, down 2.79 percent from EUR 5.38.

Techniker prüft Triebwerksbauteil in moderner Reinraum-Fertigungshalle mit CNC-Maschine — Melrose Industries PLC (GB00BNR5MZ78) zeigt fotorealistisch Triebwerk-Fertigung mit Techniker an moderner Präzisionsmaschine im Reinraum, Illustration mit AI erstellt.

Melrose (GB00BNGDN821) was trading at EUR 5.23 at Lang & Schwarz on October 8, 2026 at 4:39 p.m. CEST, down 2.79 percent from the EUR 5.38 prior close. According to Markets Insider on October 7, 2026, BNP Paribas upgraded Melrose from Underperform to Neutral and set a GBp 510.00 price target. The rating change puts the Garden Grove compensation program at the center of the current debate.

Three dated milestones

On February 27, 2026, Melrose reported fiscal 2025 revenue of GBP 3,589 million, according to MarketScreener. On July 31, 2026, the company reported first-half revenue of GBP 1,873 million, according to Simply Wall St. The latest dated milestone came on October 7, 2026, when BNP Paribas moved its rating to Neutral and named the GBp 510.00 target, as Markets Insider reported.

What does the margin change mean?

The first-half numbers show a split picture. Revenue increased from GBP 1,720 million in the first half of 2025 to GBP 1,873 million in the first half of 2026, while net income fell from GBP 285 million to GBP 75 million and net margin declined from 16.60 percent to 4.00 percent, according to Simply Wall St. The 18.50 percent adjusted operating margin reported for the first half of 2026 therefore sits beside a much weaker statutory earnings picture.

That contrast explains why the analyst action is measured rather than bullish. The target of GBp 510.00 is GBp 68.00 above the London reference price of GBp 442.00 from October 8, 2026, while the Garden Grove compensation program remains a material operating issue. BNP Paribas said the program removes an overhang, but the margin and net-income figures leave execution as the key variable.

Next reporting date

MarketScreener lists November 18, 2026 as Melrose's next sales and revenue release, providing the next scheduled test of demand and profitability.

Stock trades below yearly high

On the London Stock Exchange, Melrose was last at GBp 442.00 on October 8, 2026 at 3:48 p.m. BST, compared with a 52-week range of GBp 409.90 to GBp 685.00. The Lang & Schwarz euro quote was EUR 5.23 at 4:39 p.m. CEST, down 2.79 percent versus the EUR 5.38 prior close of October 7, 2026. The further course of trading is shown by the continuously updated real-time quote of Melrose stock.