FLSmidth & Co. A/S: Strategic Shift to Mining and Shareholder Returns Drive Buy Rating

Jefferies analyst David Farrell maintained a Buy rating on FLSmidth & Co. A/S (0OJA – Research Report) today and set a price target of DKK420.00.

David Farrell has given his Buy rating due to a combination of factors surrounding FLSmidth & Co. A/S’s strategic shift and financial maneuvers. The company has agreed to sell its Cement division, which, although valued lower than expected, marks a significant transition to focus solely on its Mining Equipment operations. This strategic move is expected to positively influence the stock’s re-rating.
Additionally, FLSmidth plans to return up to DKK 1.4 billion to shareholders through a buy-back by the end of the first quarter of 2026, utilizing proceeds from both the Cement division sale and a recent headquarters sale. Despite these capital returns, the company maintains a robust financial position, with a low Net Debt to EBITDA ratio, allowing it to pursue further growth opportunities in the Mining sector. The unchanged guidance for FY25F Mining further indicates stable current trading conditions.

In another report released on June 18, Goldman Sachs also maintained a Buy rating on the stock with a $0.00 price target.