Metlen Shares Climb After Wood & Co. Hikes Price Target 45% on Diversification Strategy

Shares of Metlen Energy & Metals (LON: MTLN) gained approximately 2.5% in Tuesday trading after analysts at Wood & Company significantly raised their price target on the stock by 45% to €65. The brokerage firm also reiterated its "Buy" rating, signaling strong confidence in the Greek industrial group's growth prospects.

Strategic Diversification Praised

The upgrade was driven by Wood & Company's positive view of Metlen's "Big Three" strategy, according to its research note. The plan aims to strengthen the company's core energy and metals operations while pursuing aggressive expansion into new, high-growth sectors.

These new verticals include critical and circular metals, defense manufacturing, and large-scale infrastructure and concessions. The broker endorsed the company's existing medium-term financial targets, suggesting the strategic shift is well-founded.

Key Business Unit Outlook

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Wood & Company's analysis highlighted the potential across Metlen's primary divisions, providing specific financial forecasts and operational commentary.

• Energy: The M RESET division, which generated €116 million in EBITDA in the first half of 2026, is now forecast by Wood to achieve €240 million for the full year and grow to €430 million by 2028.
• Metals: The firm noted Metlen's unique market position as Europe's sole fully vertically integrated bauxite-to-aluminum producer, which provides a significant cost advantage. Metlen is also set to begin producing the critical metal gallium in the second half of 2027, with 25% of its planned output already covered by a long-term sales agreement.
• Infrastructure & Defense: The infrastructure arm, METKA, was identified as an "emerging third pillar of profitability" with a project pipeline worth approximately €2 billion. In defense, the company's Volos hub is expanding to six factories, supported by partnerships with major international contractors.

Market Implications

The bullish analyst note provides a positive catalyst for investors, validating the company's diversification efforts. Wood & Company's commentary suggests that the newer infrastructure and defense segments are poised to deliver recurring revenue and stable, long-term cash flows, complementing the more cyclical, established metals and energy businesses.