Analyst Andrew Douglas of Jefferies reiterated a Buy rating on Weir Group plc (The), with a price target of p3,160.00.
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Andrew Douglas has given his Buy rating due to a combination of factors that highlight Weir Group plc’s strong performance and positive outlook. The company’s third-quarter trading update was solid, with certain segments performing exceptionally well, despite some challenges from tough prior year comparisons. The ESCO division, in particular, delivered a robust quarter, contributing to a group book-to-bill ratio that remains above 1.0x, indicating strong demand relative to supply.
Management’s reaffirmation of its full-year guidance, despite slightly increased foreign exchange headwinds, underscores confidence in the company’s strategic direction. The Aftermarket (AM) segment continues to show healthy progress, particularly in the Minerals and ESCO divisions, supported by mergers and acquisitions. Although the Original Equipment (OE) performance in Minerals faced challenges due to prior year comparisons, excluding large orders, there was a notable increase in orders. The ongoing successful execution of the Performance Excellence programme further supports a positive outlook for the group.
In another report released on October 28, UBS also reiterated a Buy rating on the stock with a p3,200.00 price target.