Morgan Stanley upgrades Thyssenkrupp outlook
Morgan Stanley has upgraded Thyssenkrupp AG to equal weight from underweight, while trimming its price target to 8.30 euros from 8.70 euros after a sharp decline in the company’s share price this year.
The German steelmaker’s stock has underperformed its peers by around 30 percent year to date, removing its previous valuation premium and bringing it to a slight discount relative to Morgan Stanley’s sum of the parts assessment, News.Az reports, citing Reuters.
Analysts said the recent re rating offers a more balanced risk reward profile, though the Steel Europe division remains a key concern due to restructuring costs and ongoing financial pressures. After accounting for expenses related to restructuring, pensions and decarbonisation, the unit’s implied equity value is estimated to be negative.
The brokerage expects thyssenkrupp to report adjusted EBITDA of 1.55 billion euros in the 2026 fiscal year, rising to 1.83 billion euros in 2027, alongside a gradual recovery in earnings per share. However, free cash flow is projected to remain negative in the near term.
Investor attention is also focused on ongoing discussions with Jindal Steel International and the potential future of TK Elevator, in which thyssenkrupp retains a minority stake.
Morgan Stanley outlined a wide valuation range for the company, with a bullish scenario of 16.10 euros per share and a bearish case of 4.80 euros, reflecting uncertainty over restructuring progress and market conditions.
News.Az
By Faig Mahmudov
