By 
M&G’s share price has risen by 3.5% after bouncing back from the July lows of 183p. The stock was trading at 190.55 at the latest update, marking a 0.34% increase.
The FTSE100 index, which reflects market sentiment in the UK, has climbed 200 points since last week. This rise was supported by a strong half-year earnings report from Prudential, and the pound has also weakened against the dollar.
Barclays recently lowered their price target for M&G shares from £1.94 to £1.90 while keeping their “underweight” rating. JP Morgan followed suit, reducing their target from £2 to £1.80 and maintaining the same rating.
In July, M&G reaffirmed its commitment to meeting its financial goals despite the implementation of IFRS 17. The investment bank assured that the new accounting standards had not affected its strategies or capital management, which is a positive sign for the stock.
The latest analysis shows M&G’s price has been moving within a wedge pattern since June 2021. After breaking above the wedge top in February 2023, the stock has since been pushed back inside. It looks like it might test the 200-day moving average soon.
The forecast for M&G’s share price will remain positive if it breaks above 196.5p, potentially leading to a test of the wedge’s upper boundary. However, if the price is rejected at the 200-day moving average, a 3.75% decline towards the July lows could occur. This decline might extend if the stock fails to find support at 183p.
I’ll continue to update M&G’s price targets and share my trades on Twitter, where you can follow me for the latest information.