Update shared on 20 Dec 2025
Fair value Increased 7.69%Analysts have raised their fair value estimate for thyssenkrupp from EUR 13.00 to EUR 14.00, reflecting a higher Street price target of EUR 7.70 versus EUR 6.30 previously as they factor in stronger top line growth despite lower margin expectations.
Analyst Commentary
Bullish analysts highlight that the recent increase in the Street price target signals growing confidence in thyssenkrupp's ability to execute on its strategic initiatives, even in a more challenging margin environment. The adjustment is seen as recognition that the company's revenue prospects and portfolio actions could unlock additional value over the medium term.
In a notable move, JPMorgan raised its price target on thyssenkrupp shares, while maintaining a Neutral rating, underscoring a more constructive stance on the stock's risk reward profile as expectations for top line growth improve.
Bullish Takeaways
- Higher price targets, including the recent move to EUR 7.70, suggest analysts see upside potential relative to current trading levels, supported by improving growth assumptions.
- Bullish analysts point to a more resilient revenue outlook, indicating that diversified operations and restructuring measures can drive steady top line expansion and support a higher valuation multiple.
- Recent target hikes are framed as a response to clearer execution on strategic projects and portfolio optimization, which could enhance returns on capital and narrow the discount to peers.
- Positive commentary emphasizes that, even with tempered margin expectations, a combination of cost discipline and volume growth may allow thyssenkrupp to outperform previous profitability forecasts.
What's in the News
- Issued new guidance for the 2025 to 2026 financial year, expecting a slight sales increase of around 1% as management signals cautious top line growth ambitions (company guidance).
- Announced a major downsizing plan at thyssenkrupp Steel Europe, aiming to cut the workforce from about 27,000 to roughly 16,000 employees by 2030 to address weak demand and intense Asian competition (company announcement).
Valuation Changes
- Fair Value Estimate increased from €13.00 to €14.00, reflecting a modest upward revision in the intrinsic value assessment.
- Discount Rate rose slightly from 5.53% to 6.26%, implying a higher required return and marginally more conservative assumptions on risk.
- Revenue Growth was revised up from approximately 4.19% to 4.83%, indicating a more optimistic view on top line expansion.
- Net Profit Margin fell significantly from around 4.32% to 2.42%, pointing to expectations of a more pressured profitability profile.
- Future P/E increased markedly from about 5.8x to 11.4x, suggesting a higher implied valuation multiple despite lower margin assumptions.
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