Crispr Therapeutics shares tumble after significant earnings miss
Jefferies upgraded Umicore SA (OTC:UMICY) stock rating from Hold to Buy on Monday, while raising its price target to EUR16.00 from EUR12.00, citing favorable metal prices that could offset automotive sector risks.
The Brussels-based materials technology company is expected to achieve fiscal year 2025 EBITDA at the top of its outlook range, according to Jefferies, which positions its estimate about 4% above consensus. This performance would make Umicore (EBR:UMI) one of the few companies in the chemicals sector to reach the high end of guidance.
Jefferies highlighted that Umicore will pass peak capital expenditure with leverage remaining within comfortable levels. The firm noted that market consensus appears skeptical about Umicore’s fiscal year 2028 Battery Materials targets, which represent a potential 20% EBITDA upside if achieved.
The upgrade reflects Jefferies’ view of Umicore’s valuation metrics, including its 5.9x EV/EBITDA ratio, 7% five-year EPS growth, and mid-term free cash flow to equity of approximately 9%. The firm also pointed out that Umicore’s Battery Materials division is currently priced at just 0.1 times book value.
Umicore specializes in materials technology and recycling, with significant operations in catalysis, energy materials, and recycling of precious metals. The company has been working to strengthen its position in battery materials for electric vehicles amid the global transition to cleaner transportation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.