Thyssenkrupp: UBS upgrades to 'buy' after Tata Steel deal
(CercleFinance.com) - UBS now recommends investors buy the stock of the German industrial and steel group ThyssenKrupp, having upgraded its previous "neutral" rating.
The broker has upped its 12-month target price for the share from 24 euros to 30 euros, suggesting upside potential of over 40%.
Analysts have reacted to the finalisation of the agreement whereby the German group and the Indian player Tata Steel will combine their European steel activities into a joint venture that will eventually be floated on the stockmarket. In so doing, ThyssenKrupp and Tata Steel will create the second largest steelmaker in Europe, after ArcelorMittal.
According to UBS, investors should consider this deal as the starting signal for “unwinding” the complex group structure, which will thus refocus on its most technological activities, such as "high-tech" components for cars and industry, elevators, etc. In addition, other "strategic announcements" could follow. The market should therefore begin to value ThyssenKrupp by the sum of its component parts, a method adopted by UBS.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The broker has upped its 12-month target price for the share from 24 euros to 30 euros, suggesting upside potential of over 40%.
Analysts have reacted to the finalisation of the agreement whereby the German group and the Indian player Tata Steel will combine their European steel activities into a joint venture that will eventually be floated on the stockmarket. In so doing, ThyssenKrupp and Tata Steel will create the second largest steelmaker in Europe, after ArcelorMittal.
According to UBS, investors should consider this deal as the starting signal for “unwinding” the complex group structure, which will thus refocus on its most technological activities, such as "high-tech" components for cars and industry, elevators, etc. In addition, other "strategic announcements" could follow. The market should therefore begin to value ThyssenKrupp by the sum of its component parts, a method adopted by UBS.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.