Salzgitter gains from German stimulus and EU tariff plans, says Oddo

Vallourec SA

20/01/2026 07:37

** Oddo BHF upgrades German steelmaker Salzgitter  SZGG.DE to "outperform" from "underperform", citing the company's potential to benefit from the German stimulus plan and the strengthening of trade barriers in Europe

   ** Improved prices thanks to the prospect of higher tariffs already benefit Salzgitter, with the EU's planned trade defence tool likely to have an even stronger effect from July 1, Oddo says

** There are signs of demand recovery, and the broker says Salzgitter's exposure to infrastructure and defence will have a positive impact

** The broker says it believes the stock can re-rate further as the market gains awareness of the value of the company's components, like its carbon rights and head start on decarbonisation

** It favourably notes Salzgitter's work on cost-cutting and openness to taking over its joint venture HKM from partners Thyssenkrupp TKAG.DE and Vallourec VLLP.PA

** Shares in Salzgitter seen up 2.2% in early Frankfurt trade

 (Reporting by Bernadette Hogg)

 ((bernadette.hogg@thomsonreuters.com))