Broker tips: Weir, Bellway, Spectris
After the recent decline in Weir Group’s shares on the back of the turmoil surrounding the oil price, the valuation of the engineering stock now looks “compelling”, according to Canaccord Genuity.
Bellway
2,546.00p
16:40 26/04/24
Electronic & Electrical Equipment
9,721.29
16:59 26/04/24
FTSE 100
8,139.83
17:09 26/04/24
FTSE 250
19,824.16
16:59 26/04/24
FTSE 350
4,470.09
16:59 26/04/24
FTSE All-Share
4,423.59
17:14 26/04/24
Household Goods & Home Construction
12,702.92
16:59 26/04/24
Industrial Engineering
13,588.68
16:59 26/04/24
Spectris
3,274.00p
16:40 26/04/24
Weir Group
2,010.00p
16:40 26/04/24
The broker upgraded its rating on the shares from ‘hold’ to ‘buy’, but slashed its target price from 2,725p to 2,340p. The stock is now trading at a discount to others in the sector and analysts believe that “much of the potential downside is already reflected in the price”.
Numis Securities has upped its forecasts for Bellway after a strong start to its fiscal year, but has downgraded its recommendation on the housebuilder from ‘buy’ to ‘add’ after the recent strong run in the shares.
The stock had gained nearly 18% in the past three months ahead of Friday’s statement and the broker now sees less upside. Despite the ratings downgrade, the broker said it still believes that Bellway is “one of the most attractive housebuilders”.
Investec has reiterated its ‘buy’ call on instrumentation and controls firm Spectris after the acquisition this week of Canadian company Engineering Seismology Group.
“Spectris’ model is intact and, while its markets embrace both robust and soft areas of demand, we trust the management team to continue generating cash and shareholder value,” the broker said, as it lifted its target price for the stock from 2,280p to 2,490p.