Acerinox: Oddo raises target price

(CercleFinance.com) - Oddo BHF reiterates its "outperform" rating on Acerinox, having increased its corresponding target price from 12 euros to 13 euros, believing that it will benefit from continued strong operational performance at NAS and a better outlook in Europe.


Given this positive outlook for the Spanish steelmaker, the broker has raised its EBITDA estimate for Q1 2021 from 110 million euros to 143 million euros, raising its estimate for FY 2021 to 524 million euros, followed by 596 million euros for 2022.

The analyst says that Acerinox should continue with its debt reduction efforts thanks to strong free cash flow generation, pointing out that the stock is trading at a 2022 EV/EBITDA multiple of 5.2x against an historical average of 9.8x.


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