Salzgitter threat: JPMorgan lowers forecast to shocking 18.40 euros!

Salzgitter threat: JPMorgan lowers forecast to shocking 18.40 euros!

The steel company Salzgitter AG is currently not in top form. As T-Online JPmorgan classified the company's shares on "Underweight" and left the price target to 18.40 euros. This decision follows a number of disappointing numbers and the lower forecast for the coming months.

Why this skepticism? Salzgitter has significantly corrected its profit forecasts downwards and does not expect any significant market recovery in the second half of the year. The analysts estimate that the consensus estimates for the operational result (EBITDA) could fall by more than 30 percent. The preliminary results for the past quarter were significantly below expectations, which caused turmoil on the market.

market development and challenges

The problems with Salzgitter are part of a larger framework in the European steel industry. As voestalpine , the entire industry faces a difficult economic environment. The demand for steel is particularly declining in the automotive sector, which also tenses the situation. These difficulties can also be felt for the Steel Division of Voestalpine, which is affected by a general decline in demand.

In the current quarter, the Steel Division reported sales declines and recorded declining prices, which had a negative impact on the yields. The focus on high -quality steel products could temporarily have stabilizing effects, but the entire economic situation remains challenging. This runs through all industries and means that other companies in steel production are also under pressure.

prospects for Salzgitter

The assessments of JPMorgan indicate that the Salzgitter share may be around 10 percent on Friday, which reflects the insecurity of the investors. At the time of publication, the share was traded with a minus of 5.06 percent and a price of 24.00 euros, which is a clear signal for the company that it is time to rethink the 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. In view of the ongoing market situation, it remains to be seen how Salzgitter and the entire sector will develop in the coming months. For ¿Steel fans now, it now says: keep an eye on the development and react to possible changes. The game remains exciting!