Analyst David Farrell of Jefferies maintained a Hold rating on Metso Outotec, boosting the price target to €14.10.
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David Farrell has given his Hold rating due to a combination of factors surrounding Metso Outotec’s current market position and future prospects. The company’s management has expressed confidence in securing large original equipment orders in the near future, which is a positive indicator. However, there are ongoing challenges such as tariff headwinds in the Aggregates business that could impact overall performance.
Additionally, while there is optimism about the medium-term outlook for commodity prices, particularly copper, the situation is not yet clear enough to predict a long-term super-cycle. Internally, Metso Outotec is focusing on improving SG&A costs and enhancing working capital efficiency, which are areas that still require attention despite recent progress. These factors combined suggest a balanced view, leading to the Hold rating as the company works through these challenges and opportunities.
Farrell covers the Industrials sector, focusing on stocks such as Volution, Halma plc, and Morgan Advanced Materials. According to TipRanks, Farrell has an average return of 10.5% and a 64.94% success rate on recommended stocks.
In another report released today, Citi also maintained a Hold rating on the stock with a €13.40 price target.