Jefferies starts Danieli at 'buy', firm poised to benefit from steel sector renewal

Danieli & C Officine Meccaniche SpA

17/09/2026 06:50

** Jefferies initiates coverage on Italian steel plant supplier Danieli DANI.MI with a "buy" rating, thanks to its beneficial exposure to a structural decarbonisation shift in the sector
** The brokerage expects the Udine-based group to capture a large share of investments in electric arc furnaces and direct reduction technologies, replacing carbon-intensive capacity
** Jefferies sets a PT of €75 ($86) - against Wednesday's closing price of €55.05 - to reflect a massive order backlog of €6 billion and a customer-funded working capital model that provides strong cash generation visibility
** "The market continues to undervalue Danieli as a technology leader exposed to a multi-year global steel modernisation and decarbonisation cycle," it notes
** The analyst adds that, despite a strong net cash position and robust earnings, shares trade at a substantial discount compared to industrial technology peers

($1 = 0.8722 euros)

 (Reporting by Romolo Tosiani)
 ((Romolo.Tosiani@tr.com))