Credit Suisse downgrades IMI but upgrades Weir

2nd Sep 2014 13:20

Credit Suisse has downgraded its rating for engineering group IMI to 'neutral' whilst upgrading sector peer Weir to 'outperform', saying that the latter offers "a better relative risk return profile" in the near term.The bank trimmed its target price for IMI's shares from 1,640p to 1,500p but has hiked Weir's target from 2,540p to 3,060p."Our end market analysis suggests that 66% of Weir end markets could offer scope for positive surprise versus 0% for IMI," Credit Suisse said.These markets are pressure pumping and control, which account for 35% of group revenue, and mining.As for IMI, the bank cautioned that the group's power market could be affected by falling levels of European utility capital expenditure.What's more, Credit Suisse said that Weir's valuation was "more compelling" and offers "greater upside on a 12-month view".Weir's shares were up 3% on Tuesday morning, while IMI fell 0.6%.BC