Broker snap: UBS raises target for Weir

30th Nov 2011 11:13

UBS has raised its target price for industrial engineer Weir from 2,400p to 2,500p, saying that comments from US peer Halliburton have made it much more optimistic.At last week's Reverse Energy Roadshow in Houston, Halliburton said that it expects the pressure pumping industry to raise capacity by 35% next year "and as industry #1 they are well placed to judge", UBS said.The broker says that it expects robust Weir SPM (well service pumps and high pressure flow control equipment) orders to leave upside risks to estimates. "This is a critical time for annual customer budgeting but if conditions remain as supportive as Halliburton suggest then Q3's record input could be the benchmark going forwards."Despite the stock trading at 13 times forward earnings, the broker says that given the momentum, "it does not dampen our enthusiasm".Weir's shares were trading 0.71% down at 1,946p at 11:13 on Wednesday.BC