A SLEW of analysts upgraded their price targets for shares in fast-growing Glasgow-based engineering company Weir Group yesterday although its shares did not benefit as they got caught up in a wider market sell-off.
On Tuesday, Weir posted a 24% rise in first half profits to £178 million and signalled full-year earnings will be higher than the City had anticipated.
In response, Credit Suisse, Panmure Gordon, Goldman Sachs and UBS raised their targets for Weir’s shares.
The FTSE-100 stock has gained 13.6% thus far in 2011.
Jonathan Hurn at Credit Suisse raised his price target for Weir to £23 from £21.30. He said first-half performance “once again highlighted Weir’s favourable end market exposure and in particular upstream oil and gas”.
He added that Weir’s capacity to spend up to £500m on acquisitions “gives plenty of scope for deals to supplement organic growth”.
Oliver Wynne-James at Panmure Gordon raised his price target 50p to £23.20.
“The changes are driven by its presence in the fast growing shale gas/oil equipment market,” he wrote in a note to clients.
Goldman Sachs raised its target to £33 from £32. UBS increased its from £24.20 to £25.
However, Weir Group’s shares continued an eight-day losing streak, falling 56p, or 2.7%, to 2016p as the FTSE retreated 2.3%.
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