Looking Through Near-Term Volatility: Balancing Softer 1Q26 Outlook with Constructive Medium-Term Upside

Analyst David Farrell from Jefferies maintained a Buy rating on FLSmidth & Co. A/S and keeping the price target at DKK610.00.

David Farrell has given his Buy rating due to a combination of factors that balance a softer near‑term outlook with a constructive medium‑term story. While his 1Q26 order intake and adjusted EBITA forecasts sit modestly below consensus, he still views the company’s exposure to attractive mining and cement end markets as intact, supported by commodity prices that remain at historically favorable levels despite recent pullbacks.

Farrell also acknowledges that geopolitical tensions in the Middle East and challenging year‑on‑year and quarter‑on‑quarter comparisons are likely to weigh on reported numbers in the short run. Even so, he believes these headwinds are temporary and do not undermine the long‑run fundamentals, leading him to maintain a positive stance and recommend investors look through near‑term volatility when assessing the stock’s value and upside potential.

Farrell covers the Industrials sector, focusing on stocks such as Babcock International, Chemring, and Volution. According to TipRanks, Farrell has an average return of 10.4% and a 65.32% success rate on recommended stocks.