FTSE 100: Index falls as earnings results weigh; pound below $1.33, Bodycote soars
On Thursday, Deutsche Bank (ETR:DBKGn) analysts raised the price target for Voestalpine (LON:0MKX) AG stock to €34 from €33 while maintaining a Buy rating. This adjustment follows Voestalpine’s fourth-quarter financial results, where the company reported an EBITDA of €378 million, surpassing expectations of €357 million and a consensus of €344 million.
Despite facing €40 million in one-off charges from restructuring activities, the company’s underlying EBITDA reached €418 million. Voestalpine’s performance is notable given the challenges in the automotive sector, which constitutes a significant portion of its business. Free cash flow also exceeded expectations, and the company reduced its capital expenditure guidance, which supports cash generation.
Deutsche Bank analysts noted that their EBITDA forecasts remain mostly unchanged, with 2026 guidance set between €1.4 billion and €1.55 billion. This positions both Deutsche Bank and market expectations at the midpoint of this range. The analysts attributed the price target increase to the lower capital expenditure outlook.
Voestalpine’s strong earnings performance underscores the quality of its business model, according to the analysts. Despite being at a peak in capital expenditure for decarbonization, the company continues to generate solid free cash flow, contrasting with peers who are adding financial leverage to support energy transition efforts.
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