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Danieli Shares Fall 7% After Removal from Kepler Cheuvreux's Top Picks List
Shares of Danieli & C. Officine Meccaniche (DANI.MI) fell sharply in Tuesday trading after brokerage Kepler Cheuvreux removed the company from its "Italian top picks" list, prompting a wave of profit-taking ahead of the firm's annual results.
The stock dropped as much as 6.8%, touching an intraday low of €58.6 from an opening price of €62.05 before recovering slightly.
Kepler Cheuvreux Cuts Forecast
The sell-off was triggered by a research note in which Kepler Cheuvreux lowered its full-year EBITDA forecast for Danieli by 10% to €447 million (approximately $519 million). The brokerage cited likely delays and logistical complexities that it expects to have negatively impacted the company's second-quarter revenue and profit margins.
As a result, Kepler said it no longer expects Danieli to beat its own earnings guidance for the fiscal year. While the brokerage maintained its "Buy" rating on the stock, it trimmed its price target by 4% to €80 per share.
AdBroader Market Context
A Milan-based trader cited by Investing.com said the analyst action triggered profit-taking among investors. The move comes as institutional sentiment has remained cautious following the company's recently reported half-year results, which showed a significant year-over-year contraction in net income.
The weakness in Danieli's stock also reflects broader headwinds facing the industrial machinery sector. The industry has been contending with a subdued global cycle for steel capital expenditure and persistent margin compression, adding to pressure on companies involved in steel plant engineering.
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