BofA reinstates Outokumpu at 'buy,' cites pricing power recovery, cost advantage

Outokumpu Oyj

25/09/2026 12:05

** Bank of America (BofA) reinstates Finnish steel company Outokumpu OUT1V.HE at ''buy,'' citing leverage to potential uplift from EU safeguard measures, operational gearing and ferrochrome integration
** BofA expects Outokumpu to benefit from structurally tighter European supply, as the Carbon Border Adjustment Mechanism and stricter safeguard measures help regional producers regain pricing power
** Outokumpu's ownership of the Kemi chromite mine and integrated Kemi-Tornio production chain provides a structural cost advantage, it adds
** In its view, the group's strategy of expanding into advanced materials and higher-margin alloy products, improves profitability and reduces cyclicality over time
** It further notes that the balance sheet enables a more disciplined approach to capital allocation
** Outokumpu's shares were up about 4% at €5.62 by 11:00 GMT, still implying upside to BofA's price target of €6.70
** Out of 14 analysts that cover Outokumpu seven rate the stock ''strong buy'' or ''buy'', four rate it ''hold'' and three rate it ''sell'' or ''strong sell," LSEG data shows

(Reporting by Alexander Klyve Gudbrandsen)
((alexanderklyve.gudbrandsen@thomsonreuters.com))