David Farrell, an analyst from Jefferies, maintained the Hold rating on Metso Outotec (0MGI – Research Report). The associated price target remains the same with €9.70.
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David Farrell has given his Hold rating due to a combination of factors related to Metso Outotec’s recent performance and market outlook. The company’s adjusted EBITA for the fourth quarter, while slightly below consensus expectations, was impacted by warranty costs. However, this minor miss is not seen as a major concern. Importantly, there was a notable improvement in cash flow, attributed to a significant working capital release, which indicates positive financial management.
Also noteworthy is the Minerals division’s order intake, which exceeded market expectations and supports future forecasts. Despite these positive developments, the market outlook remains consistent with previous quarters, suggesting stability rather than strong growth. Thus, the Hold rating reflects a balanced view of potential risks and opportunities, with shares expected to align with general market trends.