Digital Solutions And Aftermarket Services Will Transform Mining Operations

FLSmidth’s analyst price target has increased modestly from DKK 460.50 to DKK 469.89, as analysts point to improved profit margin expectations and recent price target revisions in support of the adjustment.

Analyst Commentary

Recent changes to the price targets for FLSmidth reflect a mix of optimism regarding future growth prospects and lingering concerns over the company’s execution and market position. Analysts have adjusted their expectations in response to company performance and industry trends.

Bullish Takeaways

• Some analysts have raised their price targets, highlighting improved profit margin expectations and better cost management.
• Positive sentiment is linked to ongoing restructuring efforts, which are anticipated to drive higher operational efficiency and profitability.
• There is growing confidence in FLSmidth’s ability to capture growth opportunities within its core markets, particularly as industry demand shows signs of recovery.
• The company’s execution on strategic initiatives has been acknowledged as a key driver supporting higher valuation targets.

Bearish Takeaways

• Bearish analysts remain cautious, citing reservations about market competition and challenging macroeconomic conditions impacting FLSmidth’s sustained growth.
• Concerns persist regarding the pace at which profit margins can be further improved, despite recent progress.
• There is continued skepticism over the company’s ability to consistently deliver on its financial targets, contributing to less aggressive price target increases.

What's in the News

• FLSmidth has secured its fourth consecutive order from a major Indian miner and steelmaker to supply core mining technologies for one of the world’s largest and most sustainable iron ore beneficiation plants. The contract includes delivery of the world's largest filtered tailings system and high-rate thickeners. This further enhances the company’s reputation for resource conservation and sustainability leadership. (Key Developments)
• The company completed a share buyback program between June 25 and June 30, 2025, repurchasing 87,000 shares for DKK 34 million, representing 0.15% of total shares. (Key Developments)
• FLSmidth updated its financial guidance for 2025, lowering expected revenue to DKK 14.5 billion to DKK 15.0 billion. This is down from previous guidance of DKK 15.0 billion due to customer-driven delays and adverse foreign exchange movements. (Key Developments)

Valuation Changes

• Consensus Analyst Price Target has risen slightly from DKK 460.50 to DKK 469.89. This reflects modestly increased optimism in valuation.
• Discount Rate has edged up from 6.13% to 6.21%, signaling a minor increase in perceived risk or required return.
• Revenue Growth forecast has fallen further from -6.51% to -6.69%, indicating analysts expect a slightly greater decline in revenues.
• Net Profit Margin is projected to improve, moving from 9.96% to 10.26%, suggesting higher profitability expectations.
• Future P/E remains virtually unchanged, moving marginally from 19.44x to 19.44x. This implies stable valuation multiples.