Deutsche Bank has reiterated its 'buy' rating on Weir Group PLC (LSE:WEIR), lifting its price target to 3,280p from 3,140p, saying the company’s long-term growth prospects remain strong despite a potential small earnings miss in the second half.
Analyst John Kim said Weir continues to benefit from structural demand in the mining sector, with consistent execution supporting management’s ambition to grow revenue at a mid- to high-single digit rate across the cycle.
While some upstream peers have delivered standout order growth driven by equipment sales, Weir’s business is more focused on aftermarket services, which tend to be steadier but less volatile.
As such, Deutsche expects a slight shortfall in H2 results, due later this month, but sees no change to the underlying growth trend.
Looking ahead, Kim highlighted the potential for Weir’s growing software arm to be spun out as a standalone division by 2027. For now, it sits within the group’s ESCO unit, which supplies mining equipment and services.
Shares in Weir were up 1% at 3,032p on Monday.