Mining kit is not often thought of as glamorous, but investors have been warming back up to Weir Group PLC (LSE:WEIR).
The shares bounced after the half-year results, helped by signs that miners are loosening the purse strings on capital spending. Citi thinks there is more to come.
The Glasgow-based engineer has not announced any chunky contracts this quarter, but that is largely a timing issue. Citi expects orders to be pushed into the final months of the year.
Stripping out last year’s unusually big deals in Pakistan and Morocco, underlying order growth is still running at about 9% in the third quarter.
Looking further ahead, the broker expects high single-digit revenue growth in 2026 to be well supported, even though gold, where demand has been soft, makes up only about 15% of Weir’s mining exposure.
The group remains a straightforward bet on mining activity, focused on pumps, valves and other kit that keeps ore moving.
At 13.3 times forecast 2026 earnings before interest, tax and amortisation, the shares trade at a discount to where Citi thinks they belong.
A rerating towards 15 times would not look stretched for what it calls a “high-quality pure-play”. The target price stays at £31, with a 'buy' rating intact.