Broker snap: Buy Weir, says Galvan

26th Jul 2011 11:11

Galvan Research and Trading recommends to buy engineering solutions provider Weir Group, highlighting the group's confidence in achieving good progress in 2011.On 4 May, Weir said it expected pre-tax profit for the year ending 31 December to be around £20m ahead of its previous expectations following a strong first quarter. "First quarter performance was strong with the Group benefiting from a record opening orderbook, a positive contribution from the 2010 acquisitions and significant input growth, including record quarterly orders for the Minerals and Oil & Gas divisions," the group said."In spite of the choppy ride on the stock market since May, Weir Group has not only been able to ride out the storm, but is also confident of improving full year profits further still, and ahead of expectations.," said head of research at Galvan Andrew Gibson."Shares in Weir Group remain very firm within a rising trend channel from December, especially while there is no break back below the 10 day moving average at 2,134p. While this remains the case the upside here should be towards the late 2010 price channel top of 2,275p plus [Galvan's target price]," Gibson said. Weir's shares were trading 0.36% higher at 2,218p at 11:11 on Tuesday morning.BC