Jefferies ups Acerinox to 'buy' on better US outlook, recovery in Europe

Acerinox

05/03/2025 08:41

** Jefferies upgrades Spain's Acerinox ACX.MC to "buy" from "hold", after its Q4 results reflected an improved market outlook for stainless steel on Friday

** The broker also cites the company's product mix, geographic exposure and disposal of non-core business operations

** It raises estimate for Acerinox's 2025 EBITDA by 2% based on improved U.S. outlook, fully recovered operations at its European business and expected solid contribution from Haynes

** "ACX represents an appealing opportunity for exposure to a 'European' business (even though >50% EBITDA from the US) that trades at a discount compared to pure US players," it says

** Jefferies also highlights the company's increased exposure to the high-margin high performance alloys market and strong balance sheet allowing for M&A and capital returns

** It raises Acerinox's PT to 13 euros from 10.50 euros; separately, Barclays bumps its PT 13 euros from 11 euros

 (Reporting by Javi West Larrañaga)

 ((javier.west@thomsonreuters.com; +48 58 769 65 76))