UBS and JP Morgan both back Weir as growth catalysts align for mining engineer Proactive uses images sourced from Shutterstock
Weir Group PLC (LSE:WEIR), the FTSE 100 mining technology company, has drawn bullish notes from UBS and JPMorgan, with both houses arguing that the market is underestimating the scope for an acceleration in organic growth.
UBS, which has a ‘buy’ rating and 3,400p price target, said Weir’s organic order growth has averaged just 3% over the past two years, well below its mid-to-high single-digit through-cycle target, but identified two catalysts that could add nearly five percentage points to that rate.
The first is Weir’s exposure to oil sands and coal, which UBS calculates was a 2% drag on growth in both 2024 and 2025 but could swing to a 2% tailwind as energy prices rise in the wake of the US-Iran conflict, adding roughly four percentage points in aggregate.
The second is Micromine, the mining software business acquired in April 2025, which moves from inorganic to organic growth from May onwards. UBS estimates this could add a further 70 basis points to group organic growth, assuming the business maintains its historic 25% compound annual growth rate.
UBS noted that Weir is trading on a forward enterprise value to operating profit multiple of 13.2 times, a 15% discount to its mining equipment peer group, the widest gap in five years. The broker said if growth does accelerate, that discount alone could drive a significant re-rating.
JP Morgan, which rates Weir ‘overweight’, took a broader sector view, noting that first-quarter results revealed a clear divergence between upstream equipment makers such as Epiroc and Sandvik, where order momentum slowed, and downstream players, including Weir and FLSmidth, where it held up.
The US bank said the mining outlook is increasingly positive, with exploration activity picking up, and argued that consensus forecasts implying the upstream-downstream divergence persists into 2027 and 2028 look unlikely. The broker named Weir and FLSmidth as its top picks in the sector.
Weir’s relatively low exposure to copper and gold compared with peers has weighed on its growth in recent years, UBS noted, but the commodity mix is now working in its favour as energy prices climb.