Weir Group PLC (LSE:WEIR) shares rose 1.4% after Citi upgraded the stock to 'buy' and lifted its price target to £29, citing the firm’s strong exposure to the mining end-market.
The bank’s proprietary survey shows that mining capital expenditure intentions remain positive, and resilient production, buoyed by robust copper and gold prices, should deliver idiosyncratic earnings growth even in a soft macro environment.
Citi also argues that Weir is structurally undervalued relative to peers of comparable quality.
Based on in-house benchmarking of return on capital employed and free-cash-flow margins, the broker sees roughly 15% re-rating potential as the market recognises the company’s “self-help” initiatives.
The higher target price reflects this valuation upside alongside expected operational resilience.
The stock, up 15% year-to-date, added 36p to trade at 2,536p.