In a report released today, David Farrell from Jefferies maintained a Hold rating on Metso Outotec (0MGI – Research Report), with a price target of €9.70.
David Farrell has given his Hold rating due to a combination of factors impacting Metso Outotec’s financial performance. The company’s EBITA for the first quarter of 2025 was slightly below market expectations, primarily due to a decline in revenue, particularly in the Minerals segment. Despite this, the order intake exceeded expectations, showing strength in the Aggregates sector, which has been struggling until recently.
Additionally, while Metso Outotec’s outlook for its end markets remains stable, there is noted increased volatility, particularly concerning tariffs affecting its US operations. This volatility could apply pressure on future expectations. Overall, while the company’s performance wasn’t as negative as it could have been, the mixed results and external pressures justify a Hold rating.