Jefferies analyst David Farrell maintained a Buy rating on FLSmidth & Co. A/S today and set a price target of DKK510.00.
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David Farrell’s rating is based on a combination of factors that highlight both challenges and strengths for FLSmidth & Co. A/S. Despite a slightly disappointing third-quarter performance, with order intake and adjusted EBITA falling short of expectations, Farrell sees potential in the company’s financial health. The order intake miss, particularly in the Products division, reflects the company’s anticipation of market improvements in the latter half of 2026, which suggests a strategic long-term outlook.
On the positive side, the company’s cash flow from operations (CFFO) was notably strong, positioning it to exceed its previous guidance levels. This robust cash flow performance indicates a solid financial foundation, which supports the Buy rating. Additionally, while there is a slight reduction in revenue guidance for FY25, the adjusted EBITA margin guidance remains unchanged, suggesting stability in profitability margins. These factors combined provide a basis for optimism about the company’s future performance, justifying the Buy recommendation.
According to TipRanks, Farrell is a 4-star analyst with an average return of 12.1% and a 65.81% success rate. Farrell covers the Industrials sector, focusing on stocks such as FLSmidth & Co. A/S, Babcock International, and Halma plc.
In another report released on October 27, Kepler Capital also maintained a Buy rating on the stock with a DKK575.00 price target.