Optimistic about M&G's upside potential
Trading at a record high after recently smashing its previous best, independent analyst Alistair Strang has run his software and come up with new price targets for this share.
29th July 2025 07:32
by Alistair Strang from Trends and Targets
We previously reviewed M&G Ordinary Shares (LSE:MNG) in April 2023, giving a couple of targets which the share price has finally achieved, needing only 27 months to enact a shuffle from 207p to our secondary at 252p. This is the sort of thing we dread from the company which grew out of Prudential. Of course, from our perspective, there’s now an issue…
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As the chart below shows, the share price has stalled at the 252–261p level since the middle of June. A peculiar facet of this sort of stutter is worth considering as we’ve an interesting take on it.
Firstly, the share price has stalled marginally above its prior highs in 2021, choosing to flutter around for a few weeks, perhaps while the share price gathers sufficient strength for another upward surge. Such a notion, while daft, remains something fairly common in price movements, when a rising cycle is planned.
The reality of a price dithering around in a tight range for three to 12 weeks isn’t a surprise, but what should come next generally will raise an eyebrow. If playing safe, above 261p should next trigger movement to an initial 280p with our secondary, if bettered, a longer term 306p.
But cutting to the chase, we already suspect such a rise is on the cards due to the current share price stutter, resulting in a situation where entering a trade anytime soon should pay dividends. Normally this situation shall experience a sharp rise, over a day or two, to our initial target, once the market has discovered a sufficient narrative to drive the rise.
If the share price decides to experiment with self flagellation, it needs to move below 235p to potentially trigger trouble, calculating with an initial 216p with our secondary, if broken, at a hopeful bottom of 182p and a bounce!
Our biggest fear with this comes from the salient detail this potential future rise looks like a free gift. The UK market isn’t famed for giving away such levels of optimism.
Source: Trends and Targets. Past performance is not a guide to future performance.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
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