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TAKE PROFITS Mitie (MTO)

Close Mitie (MTO) at market (209p)

We are taking profits on Mitie (MTO) following the recommended cash acquisition of the company by OCS. We first highlighted Mitie as a buy in 2024 and, excluding dividends, the shares have since risen by around 78%. The takeover process is now well advanced, with the Scheme Document published earlier this month and Mitie’s shareholding directors having given irrevocable undertakings to vote in favour of the deal.

With the shares now reflecting much of the value of the cash offer, we believe the risk/reward has shifted considerably from when we first highlighted the stock. There may be a small amount of additional value available if the acquisition completes as planned, but after such a strong return, our house view is that this is an appropriate point to take profits, bringing a very successful investment case to a close.

Profit = 78% (excluding dividends)

MTO Daily Candle Chart