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Investing.com - Deutsche Bank (ETR:DBKGn) downgraded AMG Critical Materials NV (AS:AMG) (OTC:AMVMF) from Buy to Hold while raising its price target to EUR28.00 from EUR25.00 following a significant rally in the stock price.
The stock has surged approximately 45% since Deutsche Bank’s Buy initiation last month, substantially outperforming both industry peers and the broader market, which gained about 3% as measured by the Stoxx Europe Small 200 index.
For the second quarter, Deutsche Bank forecasts AMG will report EUR501 million in revenue, representing a 38% year-over-year increase, primarily driven by antimony-related strength within the company’s Technologies division.
The bank expects adjusted EBITDA of EUR65 million, reflecting 66% year-over-year growth and a 2.2 percentage point margin improvement, though this represents a normalization from the 6.3 percentage point year-over-year margin expansion seen in Q1.
While the Technologies segment continues to benefit from elevated antimony prices, Deutsche Bank views this as a temporary rather than structural earnings driver, but notes that lithium and vanadium segments should compensate for any future normalization in antimony prices.
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