Update shared on 29 Nov 2025
Fair value Increased 1.02%Analysts have raised their price target for Outokumpu Oyj from €3.70 to €4.20, citing improved fair value estimates and a stronger profit margin outlook as key drivers behind the update.
Analyst Commentary
Recent updates from major financial institutions reflect a mixed outlook on Outokumpu Oyj, with price targets and ratings shifting in response to the company's performance and market conditions. Below is a summary of the principal bullish and bearish takeaways from the latest research coverage.
Bullish Takeaways- Bullish analysts have raised price targets, reflecting an improved fair value estimate and a strengthening profit margin outlook.
- The increase to EUR 4.20 from EUR 3.70 by a leading investment bank highlights a recognition of Outokumpu's resilience and capacity for earnings improvement.
- Upward revisions are grounded in expectations of stronger operating performance and improved business execution over the coming quarters.
- Some analysts have downgraded the stock to a hold stance, citing near-term risks to earnings and caution following the company’s latest quarterly report.
- There have been downward adjustments to price targets, as seen with reductions to EUR 3.50 and EUR 3.60. These reflect tempered confidence in short-term growth.
- Concerns persist regarding the sustainability of recent improvements. Certain analysts emphasize execution risk and uncertain demand trends in Outokumpu’s core markets.
What's in the News
- The company has announced a new restructuring program targeting EUR 100 million in structural cost savings by the end of 2027. This program may affect up to 450 employees (Key Developments).
- The company is advancing its EVOLVE strategy by investing approximately USD 45 million in a pilot plant in New Hampshire, U.S., to scale production of carbon-free materials. The plant is expected to be operational in the first half of 2027, with the goal of demonstrating industrial feasibility and scalability (Key Developments).
- The company has signed a Memorandum of Understanding with Boston Metal to collaborate on the development of carbon-free metals using advanced Molten Oxide Electrolysis technology, with a focus on enhancing operational efficiency and circularity (Key Developments).
Valuation Changes
- Fair Value Estimate has risen slightly from €4.08 to €4.13, reflecting modest optimism in the underlying valuation model.
- Discount Rate increased marginally from 7.46% to 7.47%, suggesting minimal change in perceived risk or return requirements.
- Revenue Growth projections showed a negligible decrease from 4.77% to 4.76%.
- Net Profit Margin improved modestly from 3.26% to 3.28%, indicating slightly enhanced profitability outlooks.
- Future P/E Ratio ticked up from 13.66x to 13.72x, indicating modest adjustments in anticipated market valuation multiples.
Disclaimer
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