Shares in Weir Group PLC (LSE:WEIR) climbed 2% following Deutsche Bank’s recommendation upgrade to 'buy' from 'hold', increasing its price target from 2,200p to 2,580p.
Deutsche highlighted Weir’s strong position in the mining sector and its focus on delivering a 20% profit margin as key factors supporting the upgrade.
Analysts emphasised the pump maker's focus on growing demand for mining equipment and services, especially in hard-rock mining, positions the company well for future growth. Rising commodity prices and internal cost-saving initiatives are also expected to support margin improvements.
They also noted that Weir, which derives much of its revenue from mining aftermarket services, trades at a discount compared to its peers in the upstream mining sector.
However, its profitability and growth outlook could help narrow that gap, presenting further upside potential for its shares.
The report, part of Deutsche Bank’s wider 2025 capital goods sector outlook, compared Weir’s performance to its mining peers and broader industry trends.
While some challenges persist in global markets, such as economic uncertainty in Europe and tariff impacts, Weir’s focus on structural growth in mining and efficiency improvements offers a strong foundation for sustained growth.
The stock was changing hands for 2,221.26p, up 45.26p.