Metso Outotec (0MGI – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst David Farrell from Jefferies maintained a Hold rating on the stock and has a €9.70 price target.
David Farrell has given his Hold rating due to a combination of factors influencing Metso Outotec’s performance. One of the main considerations is the company’s upcoming fourth-quarter results, where the adjusted EBITA forecast is slightly below market consensus, indicating potential challenges in meeting profit expectations. Additionally, while there is an anticipated increase in mining order intake, questions remain regarding the sustainability of this growth over the fiscal year 2025.
Furthermore, although there is an expected improvement in working capital release compared to the previous quarter, the lack of formal guidance from Metso and the potential downside risks to revenue and margin expectations contribute to a cautious outlook. These factors collectively support the decision to maintain a Hold rating, as the potential risks balance out the prospects for growth, suggesting that investors may want to wait for more clarity before making significant investment changes.
According to TipRanks, Farrell is a 4-star analyst with an average return of 5.6% and a 53.39% success rate.