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Investing.com - Kepler Cheuvreux upgraded Metso OYJ (HE:METSO) stock from Hold to Buy on Tuesday, while significantly raising its price target to EUR15.50 from EUR11.00.
The upgrade comes as the research firm sees increasing probability of a multi-year upturn in mining capital and operational expenditures, supported by evidence from Metso’s Minerals division customers, peer commentary, and robust order booking during the third quarter.
Kepler Cheuvreux has increased its Mineral division 2027 revenue estimates by 12% and adjusted EBITA forecasts by 15%, expecting consensus forecasts to enter a period of upward revisions.
The firm also noted that Metso’s Aggregate business outlook appears to be at a positive inflection point for both revenues and profits, eliminating previous concerns about downside risk, leading to a 15% increase in 2027 group adjusted EPS forecasts.
Kepler Cheuvreux justified the higher price target based on the anticipated cyclical upswing for both divisions, which warrants multiple expansion at this point in the cycle.
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