Europe's steel demand during next 5y will rise significantly (20% CAGR) due to
- increased spending on defense
- automotive & housing revovery (2026 onwards)
- Ukraine's "Marshall plan"
- climate related infrastructure spending
Energy costs in Germany to stabilize and drop due to combination of Global oversupply in major Energy related commodities, "Energie wende 2030" and to be elected (Feb25) more pro business oriented Govt.
Soon to be cancelled Nippon's M&A of US Steel ($14bn deal) will provide additional valuation updrift for TKA being identifiend by us as the best / most attractive M&A target in Europe's steel business (with robust&healthy B/S).
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The user IconGroup has a position in XTRA:TKA. Simply Wall St has no position in any of the companies mentioned. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does 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 the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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