RBC downgrades Weir to 'underperform'

“Whilst Weir shares would respond quickly to signs of oilfield activity recovering, near term we suspect they might come under pressure,” the Canadian bank said.

It said the outlook for the oil & gas division is deteriorating and current consensus forecasts are around 10% too high.

RBC noted that minerals sales/EBITA declined 8% and 11% respectively organically in the first half, with OEM sales declines offsetting the more resilient aftermarket . It added that since the first half, commodity prices have come under pressure.

The bank said the oil & gas division is working hard on its cost base, targeting £55m lower annual costs by end 2015, but only so much can be done in the face of major price and volume declines.

It now forecasts 2016 O&G sales/EBITA of £585m/£77m, down from £740m/£110m previously.

At 1026 BST, shares were up 0.9% at 1,378.66p.