Update shared on 02 Dec 2025
Fair value Increased 5.90%Salzgitter’s analyst price target has increased from €27.55 to €29.18, as analysts cite improved profit outlook and positive industry developments as reasons for the raised valuation.
Analyst Commentary
Recent analyst actions reflect a mix of optimism and caution about Salzgitter's performance and outlook. The following takeaways summarize prevailing views among research analysts regarding the company’s prospects, valuation, and potential risks.
Bullish Takeaways
- Bullish analysts are increasing price targets substantially. They cite improved regulatory protections and structural industry trends that could support higher equity multiples in the coming years.
- Significant upgrades in analyst ratings suggest stronger confidence in Salzgitter’s profit outlook and the company’s ability to benefit from favorable European market conditions, especially for flat-rolled steel products.
- There is an expectation that Salzgitter’s exposure to European markets will drive earnings growth, particularly as future pricing dynamics evolve positively for the sector.
- Raised recommendations to Buy and Outperform signal that execution on strategic initiatives and resilient market positioning are being recognized and rewarded in the company’s valuation.
Bearish Takeaways
- Bearish analysts remain cautious and are lowering price targets in response to perceived headwinds or limited upside potential in the near term.
- Some research notes maintain Neutral ratings. This indicates reservations about the sustainability of recent profit improvements or concerns over execution risks.
- Potential volatility in steel prices and regulatory uncertainty could create challenges that may limit the company’s ability to achieve higher valuations consistently.
What's in the News
- Salzgitter AG revised its earnings guidance for the financial year 2025 and now expects sales slightly above €9.0 billion. This compares to the previous range of €9.0 billion to €9.5 billion (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has increased from €27.55 to €29.18, reflecting a modest upward revision in estimated fair value.
- Discount Rate has edged up slightly from 6.25% to 6.29%, indicating a marginal adjustment in perceived risk.
- Revenue Growth projections have risen from 2.25% to 2.30%, signaling a marginally improved outlook for top-line expansion.
- Net Profit Margin estimates have improved from 2.38% to 2.47%, suggesting an expectation of slightly greater profitability.
- Future P/E ratio has moved higher, increasing from 7.68x to 7.83x. This signifies a slight shift in valuation multiples attributed to future earnings.
Disclaimer
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