Deutsche Bank upgrades Weir Group to 'buy'

Deutsche Bank upgraded Weir Group on Monday to ‘buy’ from ‘hold’ and upped the price target to 2,580p from 2,200p as it said it was positioned for growth.

The bank said it was transferring coverage to analyst John Kim, with "a new view, new numbers and an analysis of key drivers".

"Weir is delivering against its financial framework, with the company highly geared to the mining aftermarket, benefiting from structural growth in key hard-rock exposures," DB said.

"Pricing in key commodities is supportive, and margin progression is well underpinned by self-help initiatives."

The bank added: "More of a mining pure-play versus listed peers, Weir trades at a discount to highly valued upstream companies, but we see the share delivering strong growth while closing the gap on profitability."

Deutsche said this presents upside risk on multiples should the company deliver.