November 3, 2015 / 8:37 AM / 2 years ago

BUZZ-Weir jumps, Hunting slips as outlooks diverge

** Weir Group up 6 pct and a rare sight atop the STOXX 600 after setting FY outlook in line with expectations

** On the flipside, Hunting down as much as 4 pct to its lowest levels since Dec 2008 after co sees 2015 profit from cont ops falling c.90 pct

** Hurt by oil price rout, brent crude nearly halved since last yr, stocks have seen massive pull back as cut in capex spending by oil and gas customers has hurt prospects

** Weir’s forecast offers some relief as it comes despite lighter margins in its oil & gas unit

** Expectations on the sector have been slashed through the year leaving a low bar for cos to jump over in terms of results

** Yet analyst warn that there is more pain to come as oil prices likely to remain depressed and any recovery in capex some way off

** “Given the 3Q run rate on orders we expect mid single digit downgrades to (Weir‘s) consensus numbers,” Morgan Stanley write in a note

** Weir trading just off five year lows and one of the cheapest stocks on a trailing price-to-book basis among UK’s midcap engineers

** Hunting second-cheapest among its peers at a over 50 pct discount

** Weir down c.42 pct YTD, while Hunting down c.33 pct (RM: esha.vaish.thomsonreuters.com@reuters.net)

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