Analyst David Farrell from Jefferies maintained a Hold rating on Metso Outotec (0MGI – Research Report) and keeping the price target at €9.70.
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David Farrell has given his Hold rating due to a combination of factors impacting Metso Outotec’s performance. Despite recent positive updates, there is an expectation of a slow start to the year in terms of revenue and order intake, which is anticipated to be reflected in the upcoming first-quarter results. This anticipated sluggishness is attributed to the timing of fiscal year 2024 orders and prevailing macroeconomic uncertainties that are affecting decision-making processes.
Additionally, Farrell’s EBITA forecast for Metso Outotec is 5% below the consensus, indicating a more conservative outlook compared to market expectations. While there is a reaffirmation of the mining capital expenditure upcycle thesis, these factors collectively contribute to the decision to maintain a Hold rating, suggesting a cautious approach amidst the current market conditions.
In another report released on March 19, Barclays also maintained a Hold rating on the stock with a €9.50 price target.