UBS sees FLSmidth 'closing the quality gap', lifts to buy

Flsmidth & Co A/S

19/05/2026 10:51

** UBS upgrades FLSmidth FLS.CO to "buy" from "neutral", saying the Danish engineering group is "closing the quality gap" with peers through improved financials

** The broker cites a new CEO, an improving market outlook, strong order intake and recent share price weakness

** "The only remaining weakness in FLSmidth's business is cash conversion," UBS says, adding its relatively low leverage could provide scope for acquisitions later this year

** It expects "a recovery in Product orders to increase the scale of the Product business" which it says will support margin expansion through operating leverage

** UBS adds the firm trades at a significant discount to peers, which is no longer justified given the convergence of its margins and returns with industry averages

** 10 out of 15 analysts rate the stock "strong buy"/"buy" and five "hold" - LSEG data

** The shares were up 3.4% at 0939 GMT

 (Reporting by Vera Dvorakova)

 ((vera.dvorakova@thomsonreuters.com))