MS upgrades Voestalpine on its 'underappreciated resilience'

Voestalpine AG

21/08/2024 08:01

** Morgan Stanley upgrades Austrian speciality steelmaker
Voestalpine  VOES.VI  to "overweight" from "equal-weight" citing
its resilient business model through the down-cycle
    ** It says that despite the challenging market environment
in the European and global steel industry, the company's EBITDA
per tonne outperformed peers; MS expects this to continue
    ** It also points to Voestalpine's increased focus on high
margin products, defensive end-markets and long-term pricing
contracts that protect it against short-term volatility
    ** MS highlights the group's superior FCF generation despite
sizeable spending on decarbonisation, which it says makes
Voestalpine stand out from its competitors
    ** Out of 14 analysts that cover Voestalpine, seven rate the
stock "strong buy" or "buy", ​six "hold" and one "sell" - LSEG

 (Reporting by Chiara Holzhaeuser)
 ((Chiara.Holzhaeuser@thomsonreuters.com))