Story
Salzgitter Stock Surges on Jefferies 'Buy' Rating and Favorable EU Policy Outlook
Summary
Shares of the German steel producer climbed over 6% after Jefferies initiated coverage with a 'buy' rating, citing tightening EU trade protections and upcoming infrastructure spending. The move follows recent major upgrades from JPMorgan and Morgan Stanley.
Shares of German steelmaker Salzgitter (SZGG) surged to a one-month high on Tuesday, propelled by a new "buy" recommendation from Jefferies that highlighted a confluence of positive factors for the company. The stock's strong performance stood in stark contrast to a weaker overall market in Germany.
Wave of Analyst Upgrades Lifts Stock
Jefferies initiated its coverage by pinpointing several key tailwinds for Salzgitter, according to the research note. The firm cited an improving environment for European steel prices, forthcoming German federal infrastructure investments expected to begin next year, and the company's position as a primary beneficiary of tightening EU trade protections for the steel industry.
This latest call amplifies a powerful shift in analyst sentiment over the past week. Just four days earlier, JPMorgan executed a significant ratings reversal, upgrading Salzgitter from Underweight directly to Overweight. The bank more than doubled its price target to €65 from a previous €31.40, pointing to proposed EU safeguards that could cut steel import quotas by over 40% and raise out-of-quota tariffs.
Morgan Stanley also recently upgraded its rating on the steelmaker to Overweight, setting a price target of €70.80. The firm's analysts noted an increasingly visible earnings inflection point and potential upside to consensus EBITDA estimates for 2027.
AdMarket Reaction and Sector Context
In Tuesday trading, Salzgitter's stock climbed 6.7% to reach €54.825, a standout performance against a cautious European session. The broader German DAX index fell 0.47%, pressured by rising oil prices after the U.S. announced a renewed naval blockade targeting Iranian shipping.
Other European steel producers moved higher in sympathy, but on a more modest scale. Peers such as ThyssenKrupp, Voestalpine, and ArcelorMittal all traded slightly up, confirming a constructive tone across the sector, though Salzgitter was the clear outperformer on the back of the company-specific analyst commentary.
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