Assessing Bekaert’s (ENXTBR:BEKB) Valuation Following New Gulf Market Partnership with EMSTEEL

NV Bekaert (ENXTBR:BEKB) just announced a partnership with EMSTEEL to develop sustainable steel products and solutions using UAE-made steel. The collaboration covers technical cooperation and aims to expand offerings across Gulf markets.

See our latest analysis for NV Bekaert.

Bekaert’s recent partnership news comes after a steady period for its stock, with year-to-date share price gains of 3.57% and a solid 12.82% total shareholder return over the past year. Despite some short-term volatility, the longer-term trend shows momentum building, supported by a notable five-year total shareholder return of 51.24%.

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With Bekaert trading at a discount to analyst targets but enjoying robust long-term returns, investors may wonder if the recent momentum and strategic partnership is an invitation to buy, or if future upside is already reflected in the price.

Most Popular Narrative: 16.9% Undervalued

Bekaert’s most widely followed narrative assigns a fair value meaningfully above the latest share price, suggesting today’s level may not reflect the full upside many anticipate. The gap is driven by future catalysts and structural shifts that narrative followers believe could fuel outperformance in coming years.

Structural momentum in infrastructure and energy investments globally, particularly demand for steel wire in renewable energy projects (wind, solar, grid buildouts), positions Bekaert for long-term revenue growth as these sectors accelerate after current market uncertainty subsides. Continued innovation in sustainable construction materials (for example, Dramix Loop using recycled tire cord and the Flexofibers acquisition) aligns with increasing industry and regulatory demand for sustainability and circularity, supporting future revenue growth and enhancing operating margins through premium offerings.

Read the complete narrative.

Wondering what revenue and margin blueprint underpins such a bullish view? The narrative leans on several financial levers and industry trends set to surprise investors. Click to see the forecasts raising eyebrows and making this target possible.

Result: Fair Value of $41.90 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent global steel overcapacity and delayed growth in energy transition markets could weaken Bekaert’s optimistic outlook and pose challenges to future earnings progress.

Find out about the key risks to this NV Bekaert narrative.

Build Your Own NV Bekaert Narrative

If this perspective doesn't fit your outlook or you'd rather dive into your own research, you can build your own narrative in just a few minutes with Do it your way.

A great starting point for your NV Bekaert research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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