Fabian Piasta, an analyst from Jefferies, maintained the Buy rating on Befesa S.A. (BFSA – Research Report). The associated price target remains the same with €35.00.
Fabian Piasta has given his Buy rating due to a combination of factors, primarily focusing on the dynamics of zinc treatment charges (TCs) and their impact on Befesa S.A.’s financial outlook. The recent agreement between Teck Resources and Korea Zinc to lower zinc TCs for 2025 indicates a significant reduction, reaching a 50-year low. This reduction in TCs is expected to influence Befesa’s cost structure positively, as the company benefits from lower fees paid to smelters for refining zinc.
Despite global recession concerns, the lower treatment charges and high LME zinc prices suggest a stable financial performance for Befesa. The company’s management has projected an EBITDA mid-point that aligns with market consensus, indicating confidence in maintaining profitability. These factors collectively support Fabian Piasta’s positive outlook on Befesa S.A., justifying the Buy rating.