Metso Outotec (0MGI – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Christian Hinderaker from Goldman Sachs upgraded the rating on the stock to a Buy and gave it a €12.50 price target.
Christian Hinderaker has given his Buy rating due to a combination of factors, primarily driven by the company’s recent financial performance and positive market outlook. The fourth quarter results for 2024 exceeded expectations, prompting a revision of the investment thesis and an increase in the 12-month price target for Metso Outotec’s stock. The analyst anticipates a stronger demand in the North American infrastructure markets, which is expected to boost the company’s financial performance in the coming years.
Additionally, the outlook for the Aggregates and Minerals Original Equipment sectors appears more favorable with anticipated growth in orders, sales, and adjusted EBITA. This is projected to significantly enhance Metso’s free cash flow in 2025, marking a substantial improvement compared to previous years. These optimistic projections, along with new adjusted EBITA forecasts surpassing consensus estimates, led to the upgrade from a Sell to a Buy rating, recognizing potential upside catalysts for the stock in the near future.
In another report released yesterday, UBS also maintained a Buy rating on the stock with a €14.00 price target.