July 26, 2011 / 9:51 AM / 9 years ago

STOCKS NEWS EUROPE-Weir hits record; Goldman raises target

Shares in Weir Group hit a record high as Goldman Sachs raises its target price for the stock saying the British engineer is among its top picks, while technical analysts say the stock has potential to climb further.

Goldman Sachs hikes its target price for Weir to 3,200 pence from 2,650 pence in a review of the UK Capital Goods sector, saying the stock is most aligned to the major global trends that will drive top-line growth and sector-relative outperformance.

Shares are up 0.5 percent to 2,222 pence, outperforming a 0.5 percent weaker FTSE 100 index.

Bill McNamara, technical analyst at Charles Stanley, says that the stock does not look overbought, the 50-day moving average is not far away and there is no end in sight for the bull run.

“In short, there is still scope for more upside in the short- to medium-term,” he says.

Andrew Gibson, head of research at Galvan, says in a note that shares in Weir Group remain very firm;y within a rising trend channel from December and there has been no break back below the 10-day moving average at 2,134 pence.

“While this remains the case, the upside here should be towards the late 2010 price channel top of 2,275 pence plus,” Gibson says

Reuters messaging rm://atul.prakash.thomsonreuters.com@reuters.net

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