Analyst David Farrell of Jefferies maintained a Buy rating on FLSmidth & Co. A/S, retaining the price target of DKK540.00.
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David Farrell has given his Buy rating due to a combination of factors surrounding FLSmidth & Co. A/S. Despite the unexpected departure of CEO Mikko Keto, the company has successfully executed a four-year strategy under his leadership, which included scaling up its Mining operations and divesting from the Cement business. This strategic shift has positioned the company for future growth, which is a positive indicator for investors.
Furthermore, the anticipated Capital Markets Day (CMD) has been postponed to allow the incoming CEO to influence the company’s future growth strategy and margin targets. This delay, while initially disappointing, is seen as an opportunity for the new leadership to build on the existing foundation and potentially enhance shareholder value. The history of successful external CEO appointments at FLSmidth adds confidence in the company’s ability to continue its growth trajectory.
In another report released on November 13, RBC Capital also reiterated a Buy rating on the stock with a DKK500.00 price target.