Shares of Salzgitter jumped 6.7% to close at €54.825 after Jefferies initiated coverage with a buy recommendation on the German steelmaker. The brokerage singled out Salzgitter as a leading beneficiary from several industry developments, including tighter EU trade protections for steel, an improving pricing environment across European steel markets, and the prospect of German federal infrastructure investment beginning next year.
Jefferies' new call arrived on the heels of a wave of analyst upgrades that has altered sentiment toward the company. Just four days earlier, JPMorgan reversed course sharply, moving from Underweight to Overweight and more than doubling its price target to €65 from €31.40. JPMorgan highlighted EU safeguard proposals that would reduce steel import quotas by more than 40% while raising out-of-quota tariffs to 50% from 25%. The firm also cited expected benefits from the activation of the Carbon Border Adjustment Mechanism.
Morgan Stanley has also recently adjusted its stance on Salzgitter, raising its rating to Overweight and setting a €70.80 price target. That bank pointed to an increasingly visible earnings inflection and the potential for upside to 2027 consensus EBITDA estimates as reasons for its higher outlook.
Across the sector, peers moved higher but by smaller amounts. ThyssenKrupp, Voestalpine, and ArcelorMittal all traded slightly up, reflecting a broadly constructive tone in European steel names. Despite sector-level strength, the wider German market weighed on the session: the DAX fell 0.47% to 24,997 points, while the MDAX slipped roughly 0.3%. Market pressure came after rising oil prices following an announced renewal of a U.S. naval blockade targeting Iranian shipping.
The confluence of a company-specific buy recommendation from Jefferies, supportive follow-through from earlier JPMorgan and Morgan Stanley upgrades, and an EU policy narrative tilted toward domestic steel producers helped propel Salzgitter to a one-month high. The gain marked a notable outperformance relative to an otherwise cautious European trading session.
Summary: Jefferies' initiation of a buy rating, along with recent upgrades from JPMorgan and Morgan Stanley and anticipated EU policy shifts, helped lift Salzgitter shares to €54.825, a one-month high. The broader German market, however, was muted amid rising oil prices and geopolitical developments.
- Analyst catalysts: Jefferies start with Buy; JPMorgan and Morgan Stanley upgrades earlier in the week.
- Policy drivers: EU safeguard proposals and the Carbon Border Adjustment Mechanism cited as supportive for domestic steel producers.
- Market context: Sector peers edged higher while the DAX and MDAX declined amid higher oil prices.