Despite gradually declining over the last five years, the share price of WM Morrison has skyrocketed by around 50% in the last few weeks. The valuation has now reached highs not seen since 2016. For the most part, the values have been increased from mid-June. On July 12, the price was fixed at 265.60 GBP gaining 0.26 %. Investors seem to be convinced that Morrison will have a higher bid. This remains to be seen. However, Apollo Global Management, a private equity firm, stated that it is in the “preliminary stage of evaluating Morrison’s possible offer.” At the same time, there are reports that Amazon is considering expanding its existing grocery partnership with Morrison into a full-scale acquisition. It goes without saying that Morrison’s share price may continue to rise if a higher offer is made. However, it also appears to be a more speculative investment.
The management team’s ability to adapt to rising competition and new shifts in consumer behavior with home delivery has allowed the company to maintain its market share and pay a sizable dividend to shareholders. As a result, if an acquisition does not occur, the resulting drop in Morrisons share price could be an appealing buying opportunity. However, at its current price, there is not much for growth. It is not recommended to buy any shares today from my perspective.
Finance and Entertainment Reporter
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