Citi has reiterated its buy rating on Weir Group PLC (LSE:WEIR), arguing the mining equipment maker offers clear value after a sell-off, even as it trimmed its price target to 3,150p.
The bank said Weir's near-term set-up remains somewhat challenging ahead of half-year results on 29 July.
Investors fear full-year 2026 guidance is at risk given the strong ramp-up implied in the second half, and Citi agrees the targets look ambitious.
The bank's forecasts of 3% organic revenue growth and a 20.4% margin imply roughly 1% downside to consensus expectations for 2026 earnings before interest, tax and amortisation.
Despite those reservations, Citi sees good medium-term value.
Weir trades at 16 times forecast 2027 earnings, which the broker considers cheap for a business generating margins above 20% in a healthy end market.
The bank's new global mining survey shows signs of an acceleration in downstream activity, which it believes can support growth.
Citi also argues the risk-reward balance is firmly skewed to the upside.
Even in its bear case, which implies high single-digit downgrades to 2027 consensus forecasts, the broker sees only about 5% downside for the shares.
Its base case, driven by accelerating growth, points to upside of around 35%.
The Glasgow-based engineer, which supplies equipment and services to the mining industry, has been repositioned in recent years as a pure-play mining technology business.
Citi's new target still implies substantial headroom from current levels, with the shares currently changing hands for 2,368p.
