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VOE Voestalpine AG News Story

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MS cuts Voestalpine to 'equal weight' on balanced risk-reward

BUZZ-MS cuts Voestalpine to 'equal weight' on balanced risk-reward

** Morgan Stanley downgrades Austrian steelmaker Voestalpine VOES.VI to "equal weight" from "overweight", saying the recent stock re-rating leaves the risk-reward more balanced

** MS says the company's valuation is less compelling, trading close to its historical average valuation multiple, which leaves limited scope for further multiple expansion

** Near-term earnings momentum is limited by long-dated contracts, making the benefits of new European Union steel policies more gradual than for peers, the broker adds

** "To turn more constructive on Voestalpine, we would need either a more attractive entry point or stronger evidence of an earnings inflection," MS says

** On Monday, Voestalpine’s shares reversed an upward trend seen since late March, falling 4.3%

** But as of Monday's close, the shares are still up close to 23% this year

** Out of 11 analysts that cover Voestalpine, four rate the stock "strong buy" or "buy",​ six "hold" and one "sell" - LSEG data


(Reporting by Orest Dovhan )

((Orest.Dovhan@thomsonreuters.com))

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