Shares in Weir Group shed 2 percent, underperforming a 0.4 percent gain on the FTSE 100, as technical factors weigh on the shares and Panmure Gordon downgrades its rating to “hold” from “buy” and cuts its estimates post results.
From a technical point of view, the shares dropped more than 4 percent on Wednesday after flirting with resistance in the form of 2011’s closing high, at 2,218 pence.
“This does not necessarily mean that the rally has come to an end, but further short-term weakness does look possible and a test of the short-term uptrend (which now stands at 2,000 pence or so) should not be ruled out,” Charles Stanley says.
Panmure Gordon, meanwhile, lowers its estimates by around 4 percent and reduces its target price to 2,350 pence from 2,550 pence, saying: “With acquisitions, Weir’s plate is fairly full now and, with this risk in mind, we are calling a time-out.”
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