Analyst Andrew Douglas from Jefferies maintained a Buy rating on Weir Group plc (The) (WEIR – Research Report) and keeping the price target at p2,590.00.
Andrew Douglas has given his Buy rating due to a combination of factors that reflect positively on Weir Group plc’s financial performance and strategic initiatives. The company reported its FY24 results with a slight miss in sales but an EBITA that exceeded expectations, indicating strong operational efficiency. Additionally, the company showcased a sequential improvement in its book-to-bill ratio, which suggests a healthy demand for its products and services.
Moreover, the acquisition of Micromine is seen as a strategic move that could bolster Weir’s digital capabilities, despite the high initial cost. Management’s outlook for FY25F is optimistic, with expectations of sales growth, margin improvements, and strong free cash flow conversion. These factors, combined with a robust order book and increased savings from performance excellence initiatives, underpin Douglas’s positive outlook and Buy rating for the stock.
According to TipRanks, Douglas is a 4-star analyst with an average return of 3.8% and a 55.75% success rate.