Strategic Focus on Mining Drives Buy Rating for FLSmidth Amid Cautious Macroeconomic Outlook

Jefferies analyst David Farrell maintained a Buy rating on FLSmidth & Co. A/S (0OJA – Research Report) today and set a price target of DKK380.00.

David Farrell’s rating is based on several strategic considerations regarding FLSmidth & Co. A/S. He anticipates that the company’s core Mining division will see a year-over-year decline in orders due to a deliberate avoidance of lower-margin and higher-risk revenue streams. Despite this, Farrell models a slight outperformance relative to consensus expectations on adjusted EBITA, attributing this to margin dynamics.
Farrell remains optimistic about FLSmidth’s potential to evolve into a pure-play Mining entity, although he acknowledges that macroeconomic conditions have tempered his confidence in the timing of a potential Cement division disposal. This cautious outlook is reflected in his adjusted price target of DKK 380. Overall, the strategic focus on Mining and the potential for operational improvements underpin his Buy rating.