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Salzgitter threat: JPMorgan lowers forecast to shocking 18.40 euros!
JPMorgan rates Salzgitter “Underweight” on July 17, 2025 with a price target of 18.40 euros. Market analysis expects declines.
Salzgitter threat: JPMorgan lowers forecast to shocking 18.40 euros!
The steel company Salzgitter AG is currently not in top form. How t online reports, the investment bank JPMorgan has rated the company's shares “underweight” and left the price target at 18.40 euros. This decision follows a series of disappointing figures and the lowered forecast for the coming months.
Why this skepticism? Salzgitter has revised its profit forecasts significantly downwards and does not expect any significant market recovery in the second half of the year. Analysts estimate that consensus estimates for operating profit (Ebitda) could fall by more than 30 percent. Preliminary results for the last quarter were well below expectations, causing turmoil in the market.
Market development and challenges
The problems at Salzgitter are part of a larger picture in the European steel industry. How voestalpine As explained in detail, the entire industry is facing a difficult economic environment. Demand for steel is declining, particularly in the automotive sector, which is making the situation even more tense. These difficulties are also noticeable for voestalpine's Steel Division, which is affected by a general decline in demand.
In the current quarter, the Steel Division reported declines in sales and prices, which negatively impacted earnings. The focus on high-quality steel products may have had a temporary stabilizing effect, but the overall economic situation remains challenging. This affects all industries and means that other steel production companies are also coming under pressure.
Prospects for Salzgitter
JPMorgan's estimates suggest Salzgitter shares could potentially fall about 10 percent on Friday, reflecting investor uncertainty. At the time of publication, the share was trading with a loss of 5.06 percent and a price of EUR 24.00, which is a clear signal for the company that it is time to rethink its strategy.
Overall, the situation at Salzgitter shows that the challenges in the steel industry not only affect the company itself, but also influence the entire European market landscape. Given the ongoing market situation, it remains to be seen how Salzgitter and the entire sector will develop in the coming months. For “steel fans” it is now important to keep a close eye on developments and react to possible changes. The game remains exciting!