Update shared on17 Oct 2025
Fair value Increased 7.01%Analysts have raised their price target for Outokumpu Oyj from approximately €3.68 to €3.94. They cite improvements in expected revenue growth and profit margins as key factors for this upward revision.
What's in the News
- Outokumpu has started planning a new restructuring program and is targeting EUR 100 million in structural cost savings by the end of 2027. The plan is expected to impact up to 650 positions, with negotiations affecting up to 450 employees to begin soon (Key Developments).
- The company anticipates recording an adjustment item of about EUR 45 million related to restructuring costs. This will mostly impact cash flow in 2026 (Key Developments).
- Outokumpu signed a Memorandum of Understanding with Boston Metal to work on carbon-free metals for critical industries and to enhance production efficiency and circularity by using high-quality chromium from Outokumpu’s Kemi mine (Key Developments).
- Operating guidance for the third quarter of 2025 indicates a projected decrease in group stainless steel deliveries by 5% to 15%, primarily in business area Europe, due to seasonality and market weakness (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has increased from approximately €3.68 to €3.94, reflecting a modest rise in expected share value.
- Discount Rate has risen slightly from 6.72% to 6.76%, suggesting a marginally higher required return for investors.
- Revenue Growth expectations have improved, increasing from 4.19% to 4.27%.
- Net Profit Margin has grown from 2.80% to 3.07%, indicating an outlook for stronger profitability.
- Future P/E Ratio has declined moderately from 11.29x to 11.01x, implying a slight adjustment in earnings expectations relative to price.
Disclaimer
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