Deutsche Bank raises Umicore stock price target on improved outlook

Published 24/06/2025, 14:04
Deutsche Bank raises Umicore stock price target on improved outlook

Investing.com - Deutsche Bank (ETR:DBKGn) raised its price target on Umicore SA (BR:UMI) (OTC:UMICY) to EUR12.00 from EUR9.50 on Tuesday, while maintaining a Hold rating on the materials technology company.

The bank forecasts Umicore (EBR:UMI)’s first-half 2025 underlying EBITDA to decline 3% to EUR379 million, which is 2% above Bloomberg consensus estimates. Deutsche Bank attributes this expected decline to lower earnings in Recycling and Battery Materials segments, despite anticipated gains in Specialty Materials and Catalysis.

For full-year 2025, Deutsche Bank now projects underlying EBITDA of EUR760 million, representing a 4% increase from its previous estimate. This upward revision stems from improved metal prices and more favorable global automotive market expectations, with the new forecast sitting 2.5% above Vara consensus.

The bank expects Umicore management to maintain its 2025 underlying EBITDA guidance range of EUR720-780 million. For the 2026-2028 period, Deutsche Bank has increased its underlying EBITDA forecasts by 3-5%.

The price target increase reflects both the EBITDA upgrades and more optimistic discounted cash flow assumptions for later years. Deutsche Bank notes that Umicore shares currently trade at 6.1 times 2025 EV/EBITDA.

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