AA stock has underperformed the market over the past 12 months or so, and the recent firing of the CEO could be an opportunity to buy.
Fair Value = 310 Yield 4.6%
The AA underwrite insurance as well as breakdown cover – both could sources of recurring recurring revenue….
Stock looks cheap here at 210 but may be under continued selling pressure in the short term.
Wait for Stock to settle and buy if it goes up above 225 – there is still 75p of upside at this price. Take profit target 300, Stop loss 180.
Pays a dividend of 4.6% while you wait!
Consensus target price also 300.