In a report released today, David Farrell from Jefferies maintained a Hold rating on Metso Outotec, with a price target of €12.60.
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David Farrell’s rating is based on a combination of factors that reflect both positive and cautious elements in Metso Outotec’s recent performance. The company has shown a strong recovery from a previous quarter, with adjusted EBITA exceeding expectations by 10% due to improved margins, particularly in the Mining division. This indicates potential for further margin improvements as volumes increase, despite a lower Aftermarket share of Mining revenue.
However, while order intake and cash flow are robust, and there is ongoing customer momentum in investment projects, there remains some uncertainty regarding the timing of larger investments. Additionally, the market outlook for Aggregates and Minerals is expected to remain stable, without significant changes. These mixed signals suggest a balanced view, leading to the Hold rating as the company navigates through these dynamics.
In another report released on October 20, Kepler Capital also maintained a Hold rating on the stock with a €11.00 price target.