Citigroup Upgrade Boosts Weir

Engineering group Weir Group (WEIR.L) was boosted this morning by news from Citigroup of a upgrade on the stock. Moving its rating from NEUTRAL to  BUY and raising the target price on the share  from 1,750p to 2,200p.

Citigroup says that the risk reward balance on Weir Group (WEIR.L) is now “tilted to the upside in our view” and in a note to investors this morning added “We see scope for a move to earnings upgrades through 1H 2016E or even 2H 2015E as the rate of downgrades slows significantly and the negative EPS momentum could turn as the North American Rig count troughs in coming weeks on our forecasts. The economics of North American Shale remain second quartile on the cost curve and therefore should remain competitive as supply from higher break-even sources is reined in. We view this as structurally supportive of Weir’s position in oil and gas.”

Shares in Weir Group (WEIR.L) are up around 3% this morning currently trading around 1960p.