Latest News

Weir downgraded as Credit Suisse warns of risks of weaker copper price, market disruption


Weir Group PLC (LON:WEIR) has been downgraded to ‘neutral’ from ‘outperform’ by analysts at Credit Suisse, who said the investment case for the engineering firm into 2021 was “less clear” and warned key risks to the group included weaker copper prices and short-term aftermarket disruption.

In a note on Monday, the bank also upped its target price for the company to 2,150p from 1,670p following the announcement of the planned disposal of its loss making oil & gas business, however following this Credit Suisse said the company’s share price growth has “primarily been driven by strength in the copper price”, with the metal making up 26% of divisional sales for the firm’s minerals business and thus making the company susceptible to a downturn.

READ: Weir Group oil & gas sale completion delayed to 2021

The bank added that while they forecast 20% growth in Weir’s minerals equipment business for the coming year they “still do not get upside” to consensus forecasts for order intake, and that while Weir had the highest share of aftermarket of the equipment peers this “can limit scope for positive margin surprises in an equipment up-cycle”.

Weir shares were down 0.9% at 2,080p in late-morning trading.

Argo Blockchain receives 1,058 cryptocurrency miners ahead of schedule

Previous article

888 Holdings could be target at Las Vegas Sands changes tack, suggests broker

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News