Citi maintains Outokumpu stock rating, cites strategic vision through 2030

Published 12/06/2025, 13:14
Citi maintains Outokumpu stock rating, cites strategic vision through 2030

Citi analyst Krishan Agarwal has reiterated a Neutral rating and EUR3.30 price target on Finnish stainless steel producer Outokumpu OYJ (HEL:OUT1V) (OTC:OUTFF).

The company’s CMD’25 has outlined its strategic vision for 2026-2030, focusing on efficiency gains in its core stainless business between EUR250-320 million while organically expanding its presence in nickel alloys as part of its growth strategy.

Outokumpu has announced early-stage plans to develop technology for producing carbon-free high-grade ferrochrome and pure chrome metal, which could potentially sell for up to EUR9,000 per ton compared to standard ferrochrome pricing, with industrial scale production targeted by 2027.

The company has guided for EUR600 million in sustaining capital expenditures for 2026-2030, while a new A&P line is expected to require up to EUR200 million in capital expenditures, maintaining its net debt to EBITDA target at 1x and continuing its "stable and growing" dividend policy.

Outokumpu has suggested the possibility of relief on Mexican tariffs, as reported by Bloomberg Thursday.

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