Broker snap: Weir upped to a 'buy'

16th Feb 2011 12:54

Royal Bank of Scotland (RBS) upgrades Scottish engineer Weir Group from a 'hold' to a 'buy' and ups its forecasts as it believes 2011/12 consensus upgrades are possible from improved pricing/demand in the mining/oil sectors."Weir is, in our view, a quality name in the UK Capital Goods sector and is faced with a number of attractive end-market exposures. In line with our more positive sector stance on the EU mining equipment names, we upgrade our Weir forecasts," the broker says.RBS upgrades 2011 and 2012 earnings per share estimates by 6% and 9%, respectively, "taking into account the three acquisitions made in the fourth quarter of 2010, from upping its Minerals/Oils division assumptions, and including the benefit of improving pricing."The broker expects a good set of FY2010 results when Weir reports on 3 March, and increases the target price from 1,660p to 1,915p.