Deutsche Bank Raises Voestalpine Price Target on Strong Earnings Outlook

Voestalpine AT0000937503

Voestalpine shares are in focus this week following a significant analyst upgrade and a major operational milestone. The Austrian steel and technology group is receiving renewed attention from investors, though questions remain about its ability to navigate the broader sector's persistent challenges.

Market strategists at Deutsche Bank have revised their assessment of Voestalpine, increasing their price target from €44 to €48 per share. This upward adjustment is driven by substantially raised profit expectations for the coming years. For the current fiscal year 2026, earnings per share (EPS) are forecast at €2.25. The bank's experts then anticipate a significant jump to €3.86, followed by a further rise to €5.29 in subsequent periods.

This revised outlook underscores the bank's confidence in the company's operational strength. Deutsche Bank believes Voestalpine can significantly enhance its profitability despite a difficult market environment.

The optimism is further supported by concrete news from the company's operations. Voestalpine recently secured the largest single order in the history of its high-bay storage systems division. The project, based in Turkey, involves the construction of a logistics center in Istanbul and carries a value of approximately €41 million.

Strategic Execution Amid Sector Headwinds

This contract, won by the Metal Forming division, holds strategic importance. It demonstrates Voestalpine's continued international competitiveness within specialized niches. Scheduled for completion in April 2027, the deal ensures medium-term capacity utilization for this segment.

The success highlights the company's strategic pivot: using technological specialization to decouple from the volatile conventional steel market. The classic European steel industry continues to suffer from high import pressure and uncompetitive energy prices. Voestalpine's focus on segments like storage logistics is a deliberate attempt to counter these persistent sectoral risks.

The current earnings estimate revisions are largely predicated on the assumption that this specialization strategy will prove effective. A key factor for the stock's future trajectory will be whether growth in these niche areas can, as projected, more than offset the structural pressures facing the company's core business.

Key Data Points:
* Updated Valuation: Deutsche Bank sets a new fair value target of €48 per share.
* Earnings Surge: EPS forecast rises to €5.29 by 2028.
* Historic Win: A €41 million logistics project contract has been secured.