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Investing.com - Deutsche Bank raised its price target on Voestalpine AG (VIE:VOE) to EUR40.00 from EUR35.00 on Wednesday, while maintaining a Buy rating on the Austrian steel company.
The price target increase reflects Deutsche Bank’s updated outlook on Voestalpine’s mid-cycle earnings capability, which it expects to be structurally lifted by cost-cutting measures and increased capital discipline initiated by the company.
Deutsche Bank noted that despite underperforming peers by approximately 20% over the past four years due to concerns about automotive exposure, Ukraine, and decarbonization, Voestalpine has demonstrated stronger operational performance than its competitors during this period.
The bank adjusted its 2026-28 EBITDA estimates upward by 0-2% while reducing projected capital expenditures, contributing to the higher price target. Deutsche Bank also highlighted Voestalpine’s Railway Systems business as underappreciated by the market.
Deutsche Bank cited Voestalpine’s solid balance sheet and cash flow as factors making the stock an attractive option for investors seeking quality exposure with cyclical upside at what it considers a moderate valuation.
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