Update shared on 03 Nov 2025
Fair value Increased 3.08%Analysts have raised the fair value estimate for Salzgitter from €24.31 to €25.06, citing a more favorable long-term outlook. This outlook is supported by recent upgrades and expected benefits from its exposure to European flat-rolled steel prices.
Analyst Commentary
Bullish Takeaways
- Bullish analysts have upgraded Salzgitter's outlook based on expected benefits from strong European flat-rolled steel prices in the coming years.
- Recent upgrades have led to substantial increases in price targets, reflecting improved confidence in the company's potential for long-term value creation.
- The company's positioning within the European steel market is considered advantageous for capitalizing on upcoming growth opportunities and demand trends.
- Analysts highlight Salzgitter’s increased exposure to favorable market dynamics as a driver for potential earnings upside.
Bearish Takeaways
- Bearish analysts maintain caution, with some lowering their price targets due to concerns over execution risk and the possibility of underperformance relative to industry peers.
- There are ongoing reservations about the company's ability to consistently deliver on growth ambitions, especially in a competitive and cyclical sector.
- Analysts emphasize that, despite upgrades by some, Salzgitter still faces headwinds from market volatility and potential cost pressures.
Valuation Changes
- Fair Value Estimate has risen slightly from €24.31 to €25.06.
- Discount Rate has increased marginally from 5.64% to 5.71%.
- Revenue Growth forecast has edged up from 2.25% to 2.25%.
- Net Profit Margin is projected to improve modestly from 2.37% to 2.39%.
- Future P/E ratio has increased from 6.48x to 6.64x.
Disclaimer
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