AnalystConsensusTarget updated the narrative for TKA

Thyssenkrupp’s analyst price target has increased modestly, rising from €7.10 to €7.60, as analysts cited improvements in company outlook and supportive recent upgrades to justify the change.

Analyst Commentary

Recent analyst activity on Thyssenkrupp reflects a mixture of cautious optimism and ongoing concerns about the company's valuation and longer-term prospects. The following points summarize the prevailing views among market watchers:

Bullish Takeaways

• Bullish analysts have raised price targets in response to improved company outlook, indicating confidence in near-term stabilization and recovery efforts.
• Upgrades from more negative ratings suggest that recent business developments have mitigated some downside risk, making shares more appropriately valued at current levels.
• Supportive changes in sentiment are driven by perceived successes in restructuring and cost optimization, which could enhance future profitability.
• Price target increases signal expectations of moderate growth and reflect the belief that the worst of operational challenges may be behind the company.

Bearish Takeaways

• Bearish analysts remain cautious, with some price target reductions reflecting ongoing uncertainty in execution and limited upside in the medium term.
• Questions persist around the sustainability of improvements and potential headwinds that could challenge future earnings growth.
• Some analysts maintain neutral or underweight ratings, citing concerns about competitive pressures and a lack of clear catalysts for accelerating valuation.
• Valuation remains a focal point, with skepticism as to whether recent gains are justified by underlying business fundamentals.

What's in the News

• thyssenkrupp AG has provided EBIT earnings guidance of EUR 235 million for the fourth quarter of 2025 (Key Developments)
• The company revised its fiscal year 2024-2025 outlook, narrowing the guidance range and partially raising expectations for sales and EBIT. The company now projects group-level sales between EUR 850 million and EUR 920 million, and EBIT between minus EUR 7 million and plus EUR 7 million (Key Developments)

Valuation Changes

• Fair Value remains unchanged at €10.20, indicating no shift in the long-term intrinsic value estimation.
• The Discount Rate has risen slightly from 5.57% to 5.59%, reflecting a marginal increase in the perceived risk profile.
• The Revenue Growth forecast stays essentially stable, holding at approximately 2.79% year-over-year.
• The Net Profit Margin estimate is virtually unchanged, maintaining a level of 2.57%.
• The future P/E ratio has increased minimally from 8.01x to 8.02x, suggesting expectations for small improvements in future earnings multiples.