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SZG: Future Prospects Will Balance Regulatory Stability And Revenue Uncertainties

Update shared on 18 Nov 2025

Fair value Increased 9.93%
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Salzgitter's analyst price target has been raised from €25.06 to €27.55. This reflects analysts' expectations for improved regulatory conditions and the potential for higher equity multiples.

Analyst Commentary

Recent analyst research provides a balanced perspective on Salzgitter's outlook, highlighting both emerging strengths and areas that warrant caution for investors.

Bullish Takeaways
  • Bullish analysts have highlighted Salzgitter's upgraded ratings and significantly higher price targets. These reflect renewed confidence in the company's future prospects.
  • There is growing optimism regarding Salzgitter's exposure to European flat-rolled steel prices, especially looking ahead to 2026. This is seen as a potential driver for revenue and margin growth.
  • Regulatory protections implemented over multiple years are viewed as a key support for the company. These regulations provide stability and increase the likelihood of improved equity multiples in the near term.
  • Market participants are encouraged by upward revisions to price targets, signaling a favorable reassessment of Salzgitter's growth trajectory and valuation potential.
Bearish Takeaways
  • Despite recent upgrades, there remains a level of caution evident in the maintenance of Neutral ratings from major institutions. This suggests uncertainty around the pace of execution or market normalization.
  • Bearish analysts point out the reduction in price targets by some major firms, underscoring sensitivities to market conditions and the need for sustained improvement in operational performance.
  • Valuation concerns persist, with some analysts appearing wary of the company’s ability to fully capture projected benefits from positive regulatory developments.

What's in the News

  • Salzgitter AG has revised its earnings guidance for the 2025 financial year, projecting sales slightly above €9.0 billion. This compares to the previous estimate of between €9.0 billion and €9.5 billion (Key Developments).

Valuation Changes

  • Consensus Analyst Price Target has increased from €25.06 to €27.55, reflecting a moderate upward revision.
  • Discount Rate has risen from 5.71 percent to 6.25 percent, indicating a slightly higher level of perceived risk or required return in current models.
  • Revenue Growth Estimate is virtually unchanged, moving marginally from 2.25 percent to 2.25 percent.
  • Net Profit Margin projection has slipped slightly, decreasing from 2.39 percent to 2.38 percent.
  • Future P/E Ratio has increased from 6.64x to 7.68x, which suggests analysts expect somewhat higher valuations for the company moving forward.

Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.