MARKET TALK: Goldman Upgrades Weir, Cuts Bodycote

9th Jun 2010 07:44

0644 GMT [Dow Jones] Goldman Sachs adjusts ratings on UK capital goods stocks in its latest sector review, upgrading Weir Group (WEIR.LN) to buy from neutral, but cutting Bodycote (BOY.LN) and Morgan Crucible (MGCR.LN), both to neutral from buy. Says while macroeconomic uncertainty remains, we believe capital goods company earnings should continue to benefit from restructuring savings, strong near-term industrial production, potential for inventory rebuild in end markets, reversal of 2009's underproduction, and recovery of fixed investment from current low levels. In terms of target prices, Goldman lifts Weir Group target price to 1447p from 1070p, and Bodycote target to 290p from 274p. Cuts Morgan Crucible target to 250p from 254p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 09, 2010 02:44 ET (06:44 GMT)