Share on StockTwits

Merchants Trust plc (LON:MRCH)‘s stock had its “neutral” rating reiterated by equities research analysts at Edison Group in a research note issued to investors on Wednesday, reports.

The analysts wrote, “Executive Interview with Simon Gergel of Allianz Global Investors, who manages The Merchants Trust (MRCH).

The Merchants Trust (MRCH) gives investors exposure to UK companies providing an above-average yield, drawn mainly from the blue chip FTSE 100 index (70%), using gearing to enhance returns. The trust’s objective is to deliver a high and rising income from a relatively focused portfolio of companies, and it has recently raised its dividend for the 32nd year in a row. By combining analysis of company fundamentals, valuation and the dynamic environment, the manager aims to identify good companies that are attractively valued and well positioned for the future.

Simon Gergel of Allianz Global Investors has managed Merchants since 2006. In this interview he explains why he believes the best opportunities in the UK stock market at present may be found in the very largest companies that have lagged the market as medium-sized stocks have outperformed, as well as in recovery situations where the market is too focused on short-term risks to appreciate the longer-term growth potential. He also explains how the investment trust structure allows managers to build long records of uninterrupted dividend growth by reserving income in good years that can be used to maintain dividends in less favourable conditions.

Merchants Trust plc (LON:MRCH) opened at 509.194 on Wednesday. Merchants Trust plc has a 1-year low of GBX 438.20 and a 1-year high of GBX 524.00. The stock’s 50-day moving average is GBX 507.7 and its 200-day moving average is GBX 502.6.

To view Edison Group’s full report, visit Edison Group’s official website.

Get Analysts' Upgrades and Downgrades via Email - Stay on top of analysts' coverage with Analyst Ratings Network's FREE daily email newsletter that provides a concise list of analysts' upgrades and downgrades. Click here to register now.