UBS belässt Salzgitter auf 'Neutral' - Ziel 17 Euro from

UBS Maintains 'Neutral' Rating on Salzgitter, Sets Target Price at EUR 17

Overview

* UBS has maintained its 'Neutral' rating on Salzgitter, a German steel and technology company. * The bank has also set a target price of EUR 17 for the company's shares. * This target price implies a potential upside of approximately 10% from the current market price.

Analyst Commentary

* In a research note, UBS analyst Carsten Riek believes that Salzgitter's valuation is currently fair. * He notes that the company's earnings are expected to improve in the coming years, but that this is already reflected in the current share price. * Riek also highlights the company's exposure to the automotive sector, which could be a risk factor in the future.

Company Profile

* Salzgitter is a leading European steel and technology company. * The company produces a wide range of steel products, including flat steel, long steel, and tubular products. * Salzgitter also has a number of technology businesses, including a division that produces wind turbines.

Market Outlook

* The steel industry is currently facing a number of challenges, including rising input costs and slowing demand. * However, Salzgitter is expected to be able to weather these challenges due to its strong market position and its focus on high-value-added products. * The company is also expected to benefit from the growing demand for steel in the automotive and construction sectors.

Conclusion

* UBS believes that Salzgitter is a well-managed company with a strong market position. * However, the bank believes that the company's valuation is currently fair and that the upside potential is limited. * As a result, UBS has maintained its 'Neutral' rating on the company and has set a target price of EUR 17 for the shares.