Goldman Sachs lifts rating on Danish FLSmidth to "buy"

Goldman Sachs lifts rating on Danish FLSmidth to "buy"
Published: 10 June 2010

Goldman Sachs has upgraded the recommendation on Danish cement and minerals system supplier FLSmidth & Co A/S to "buy" from "neutral" citing the company’s position to benefit from the recovery of investments in the mineral and cement industry.
 
The broker also raised the 12-month price target to DKK613, which corresponds to an upside of 61%.
Goldman Sachs wrote in the analysis that FLSmidth with its 28% sales exposure in the BRIC countries (Brazil, Russia, India and China) is well positioned to fight the locally-placed competitors. The broker estimated further that FLSmidth will outperform the market growth over the next business cycle, and that the current quotation is a good opportunity to buy shares.