In a report released today, Tommaso Castello from Jefferies upgraded Acerinox (0OIQ – Research Report) to a Buy, with a price target of €13.00.
Tommaso Castello has given his Buy rating due to a combination of factors that highlight Acerinox’s potential for growth and value creation. The company has shown an improved outlook for stainless steel, particularly after positive results in the fourth quarter of 2024. Acerinox’s strategic moves, such as the sale of Bahru, the acquisition of Haynes, and the reorganization in Europe, have positioned it well to capitalize on market opportunities.
Furthermore, Acerinox’s strong presence in North America, where more than half of its sales and EBITDA are generated, supports its growth prospects. The company is investing significantly to expand production and achieve synergies, particularly with its Haynes acquisition. These efforts, combined with a solid balance sheet and positive free cash flow generation, make Acerinox an attractive investment, especially as it trades at a discount compared to its US counterparts.
In another report released on February 28, Barclays also maintained a Buy rating on the stock with a €11.00 price target.