Citi resumes Metso at 'neutral' on 'unrealistic' market margin expectations

Metso Oyj

11/08/2025 10:28

** Citi resumes coverage on Finnish industrial machinery company Metso METSO.HE with a 'neutral' rating and a EUR 11.80 price target, citing unrealistic market hopes for future margin targets

** It believes investor hopes for a new margin target above 19% are "unrealistic", as this would imply a new peak margin of around 20% for the company

** Citi says target above 19% would require the Aggregates division margin to exceed that of rival Sandvik

** "Sandvik's business will benefit from better mix from higher growth in Mining and a 2x higher after market share, in our view," it adds

** While acknowledging recent strong margins in the Aggregates unit, the broker suggests the division may have been over-earning as indicated by recent results

** Out of 20 analysts that cover Metso, 12 rate the stock "strong buy" or "buy", six rate "hold" and two​ rate the stock "strong sell" or "sell" - LSEG data

 (Reporting by Agnieszka Gosciak-Rabalska)

 ((Agnieszka.gosciak@thomsonreuters.com))