Voestalpine’s stock hits multi-month high as analysts bet on tech-driven growth
Voestalpine’s shares have surged to their highest level in months, defying a weak stock market. The Austrian steel and technology group saw its stock climb 1.44% to €39.32, leading the ATX index. Analysts now predict further gains as the company expands beyond traditional steel production into high-margin sectors.
Barclays has sharply upgraded its outlook for Voestalpine, lifting the price target from €35 to €44. Analyst Pierre Rousseau maintained an 'Overweight' rating, suggesting a potential upside of around 12%. If earnings forecasts hold, the stock could soon breach the psychologically important €40 level.
Profit expectations are rising sharply. Barclays projects earnings per share of €2.58 in 2025/26, €3.83 in 2026/27, and €4.27 in 2027/28. These figures, if achieved, would make the company’s valuation more attractive based on 2026/27 estimates. Dividends are also set to grow, reaching €1.30 by 2028—a draw for income investors.
The company’s shift toward specialised technology is paying off. A recent €41 million order from Turkey for a high-bay warehouse in Istanbul highlights this strategy. By diversifying beyond steel, Voestalpine is strengthening its position against competitors like Thyssenkrupp.
External factors may also help. China’s steel production has hit a seven-year low, which could reduce global overcapacity pressures. This decline might ease price competition in the medium term, further supporting Voestalpine’s margins.
Voestalpine’s stock now trades above €39, with analysts seeing room for more growth. The company’s focus on high-tech solutions and a favourable industry outlook have improved its prospects. If current trends continue, both earnings and dividends could rise significantly in the coming years.
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