MS upgrades Befesa to 'overweight' seeing growing confidence on earnings delivery

Befesa SA

25/06/2025 07:37

** Morgan Stanley raises metal recycling company Befesa BFSA.DE to "overweight" from "equal weight", citing positive earnings trajectory, renewed capital discipline and lower debt

** The stock is up 5.7% in early Frankfurt trade, at the top of the German small-caps index .SDAXI

** Befesa's solid recent performance supports confidence in earnings growth, aided by positive revisions and strong zinc hedging through 2026 at favorable prices, MS says

** "Our updated 2025-26 EBITDA forecasts now sit ~5% above consensus, and we see limited spot price downgrade risks to 2025/26 consensus estimates, given constrained mine supply," the brokerage adds

(Reporting by Anastasiia Kozlova)

((Anastasiia.Kozlova@thomsonreuters.com))