Kepler sees shift to drive re-rating, starts FLSmidth with 'buy'

FLSmidth & Co. A/S

11/12/2024 09:08

** Kepler Cheuvreux initiates coverage of Danish engineering
group FLSmidth  FLS.CO  with "buy" rating, price target of DKK
448, seeing the shift to pure-play mining to drive a re-rating
of the shares 
    ** The brokerage points out that the Cement division
divestment is expected imminently, and the wind-down of non-core
(NCA) to be completed in 2024
    ** It sees "an attractive story" that combines mid-term
growth from mining capex and margin expansion from self-help and
volume, coupled with a declining risk profile
    ** Kepler sees the re-rating to be driven by focus, revenue
growth, margin expansion, and increased cash conversion 
    ** Out of 12 analysts that cover the FLSmidth stock, eight
rate it "strong buy" or "buy", three rate "hold", and one rates
"sell"

 (Reporting by Marta Frąckowiak)
 ((marta.frackowiak@thomsonreuters.com))