A good reason to keep hold of Merlin Entertainment Shares or maybe buy

Wise_Investor_2

Deutsche Bank has just set a target price of £3.95 on Merlin Entertainment shares: http://www.investoo.co.uk/deutsche-bank-rates-merlin-entertainments-a-buy/

By my calculations, that would be something like a 28% increase on the offer price, so I'm definitely keeping my shares in Merlin for a while yet.

Also, if Merlin Shares do reach this high, they look like a dead-cert to go into the FTSE 100, so there is definitely some great room for more upside!

Nothing is guaranteed tho!

Old_Slaphead

I own some Alent shares.
Some broker recently upped it's target price to 420p.
The shares promptly fell from around 360p to 310p where they remain.
I wouldn't set any store by "target prices" - they're meaningless.

Anyone give me any idea why brokers make such predictions and why they are often so diverse ie. For RM... UBS say 450p but JPM say 700p+

Wise_Investor_2

Old_Slaphead wrote: »

I own some Alent shares.
Some broker recently upped it's target price to 420p.
The shares promptly fell from around 360p to 310p where they remain.
I wouldn't set any store by "target prices" - they're meaningless.

Anyone give me any idea why brokers make such predictions and why they are often so diverse ie. For RM... UBS say 450p but JPM say 700p+

Well. There is no right or wrong answer. The proof is in the pudding and the pudding is the actual results of the company!

Everyone has a view on a business and factors certain elements in more than others e.g. growth or contraction, but then unexpected problems can hit a company too e.g a lengthy strike action, a lawusit etc.

It's all very subjective, that's that makes it exciting.

Take your point onboard regarding broker views, but for me it was good to see at least one broker factor in a good target price!

WatsonNimrod

There is almost always a vested interest in these 'target prices' well certainly in my cynical view.

I'm waiting till I at least get a discounted trip to Legoland!

grey_gym_sock

Wise_Investor wrote: »

The proof is in the pudding and the pudding is the actual results of the company!

so we should be eating company accounts, instead of reading them?!

how does that work with PDFs?

Wise_Investor_2

I'd suggest reading account not eating them!!! :T

Thrugelmir

Seems a wide spread on the shares. Maybe one to cash out of once the froth settles down.