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HYBRIT Initiative And European Demand Will Advance Decarbonized Steel

Update shared on 08 Oct 2025

Fair value Increased 2.07%
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AnalystConsensusTarget's Fair Value
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1Y
4.4%
7D
-1.0%

Analysts have raised their price target for SSAB from SEK 68.46 to SEK 69.88. This change reflects updated assumptions on profit margin and discount rate in their latest valuation assessment.

What's in the News

  • Construction has begun on SSAB's new steel mill in Luleå, a project expected to reduce Sweden's total carbon dioxide emissions by 7% and drive the transition to fossil-free steel production. The new facility, set to begin operations by the end of 2029, will replace existing blast furnace production and will feature electric arc furnaces, advanced metallurgy, and both hot and cold rolling mills. Total investment amounts to EUR 4.5 billion (Key Developments).
  • The Swedish Financial Supervisory Authority (FI) has initiated a sanction evaluation concerning SSAB's disclosure of a SEK 33,300 million goodwill impairment reported in the fourth quarter of 2022. SSAB asserts the impairment was reported correctly and in line with expert advice, with no further information received from FI at this time (Key Developments).

Valuation Changes

  • Consensus Analyst Price Target has risen slightly from SEK 68.46 to SEK 69.88.
  • Discount Rate increased from 5.57% to 5.81%, reflecting a modest adjustment upward.
  • Revenue Growth estimate has fallen to 1.75% from the previous 2.15%.
  • Net Profit Margin expectation rose moderately from 6.66% to 6.98%.
  • Future P/E ratio remains largely unchanged, moving from 11.39x to 11.31x.

Disclaimer

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