Goldman Sachs has reiterated its “buy” rating for the engineering company, with a 12-month target price of 3,250p. Adding the group to its conviction buy list, the move was sparked by positive announcements on mining capex from the large miners and positive read-across from the mining capex exposed engineers. Goldman views the current 23 per cent slide in Weir’s share price as a compelling entry point.
JP Morgan has cut their recommendation from “overweight” to “neutral”, with a 12-month target price of 460 krone. The broker cut its forecasts by eight per cent at earnings-before-tax (Ebit) level, and now expects only three per cent Ebit growth. Reducing estimates ahead of the second quarter, the move was prompted by reduced assumptions for the underlying growth of the Russian beer market from five per cent to flat.
UBS has upgraded to a “buy” rating, with a 12-month target price of 300p. The broker sees plenty of headroom for a dividend payment, plus scope for an extra share buyback at a similar level to the current £500m scheme. While BAE’s net debt has risen in the first half of the year, UBS reckons the firm still has enough earnings to pay a dividend for eight years even if the company has zero free cash flow.