Voestalpine Shares Attract Bullish Price Target Upgrades

Following a remarkable rally of over 120% in the last year, investors are questioning how much further Voestalpine's stock can climb. This week, two major banks provided a clear and optimistic answer, issuing significant increases to their price targets and highlighting the company's operational resilience, which continues to support the equity.

The analysts' bullish stance is grounded in concrete business performance, not just financial models. On January 15, Voestalpine announced the largest single order in the history of its high-bay warehouse division—a €41 million contract for a logistics hub in Istanbul. This deal underscores the strategic shift to diversify into higher-margin processing segments and reduce reliance on the volatile spot market for steel.

This strategic progress is supported by a robust balance sheet. The company's gearing ratio declined to 19.5% in the first half of the fiscal year, marking its lowest level in nearly two decades. Furthermore, with free cash flow reaching €296 million, Voestalpine possesses the financial strength to absorb rising input costs, such as for coking coal, through increased sales volumes.

Should investors sell immediately? Or is it worth buying Voestalpine?

Major Banks Revise Targets Upward

Barclays has taken a particularly positive view. On January 19, the British investment bank raised its price objective by 26% to €44 per share, reiterating its "Overweight" recommendation. Analyst Tom Zhang pointed to stable margins being maintained despite a challenging industry backdrop. The firm forecasts earnings per share of €2.58 for the current fiscal year, projecting growth to €4.27 by 2027/28.

Citigroup followed suit on Thursday, lifting its target from €40 to €42, though it maintains a "Neutral" rating. With the stock currently trading around the €40 level, it remains below the valuation set by most major institutions. Other significant targets include Deutsche Bank at €44 and J.P. Morgan at €43.40, both suggesting a substantially higher fair value for the company.

Next Catalyst: Third-Quarter Earnings Report

Market attention now turns to February 11, the scheduled date for Voestalpine's third-quarter results. A key focus will be whether management reaffirms its full-year EBITDA guidance range of €1.4 to €1.55 billion and what signals are sent regarding the dividend. Should the shares achieve a sustained breakout above the psychologically significant €40 threshold in the near term, chart analysis suggests a clearer path toward the newly elevated analyst price targets.