Suche
Mein Konto
Salzgitter shares explode: 20% price jump thanks to Bundeswehr approval!
Salzgitter shares jump by 20% after arms approval for special steel. Analysts warn of an exaggerated rally.
Salzgitter shares explode: 20% price jump thanks to Bundeswehr approval!
A sudden boom on the stock market is currently causing a stir: Salzgitter AG shares made an impressive price jump of 20 percent on Tuesday, making them the leading stock in the SDAX small-cap index. The upward trend continued on Wednesday, putting investors in a celebratory mood The shareholder reported.
But what is behind this encouraging increase? The reason for the furore is the steel grade SECURE 500, which meets the technical requirements for use by the Bundeswehr. This special steel grade is approved for military applications in the thickness range from 6 to 16 millimeters. Possible uses include vehicles and protection systems. Salzgitter is also in the approval process for other types of steel, which is further fueling the enthusiasm, as is the news MarketScreener show.
Analyst opinions in focus
However, UBS analysts present a critical perspective on the current rally in Salzgitter shares and rate it as exaggerated. Analyst Andrew Jones sees additional earnings potential of 110 to 200 million euros in the best case scenario, which amounts to 8 to 15 percent of the market capitalization before the price jump. However, the price is currently close to its March high of 28.18 euros. A break above this level could be a strong signal for the stock the shareholder elaborates further.
The upward trend is no coincidence, as the cyclical steel business is fundamentally difficult. Nevertheless, steel for defense purposes could become a sales and margin driver for Salzgitter in the long term. This development could be important for both the company and the German steel industry as a whole.
The changing role of the steel industry
The steel industry in Germany is currently at a crucial crossroads. A study by Oliver Wyman and IW Consult, which was commissioned by the Steel Association, looks at the role of the steel industry in industrial networks and overall economic resilience. Germany as a steel location could experience serious changes if the transformation and decarbonization goals are not successfully implemented. According to the study, 23 percent of the production value and 12 percent of the jobs in the German economy as a whole are directly linked to the steel industry, which illustrates its enormous influence on the economic structure.
It is noteworthy that 69 percent of the companies surveyed consider German steel to be important for the stability of supply chains. Around 80 percent report a reduction in CO2 emissions when they use German steel. Given the challenges facing the steel sector, it is essential for the entire industry to find a path forward that is both environmentally and economically sustainable.
In summary, it can be said that Salzgitter AG is currently in the focus of investors - both due to the armaments fantasies and the overarching themes of the steel industry. How the situation will develop remains to be seen, but one thing is certain: there is still work to be done.