Jefferies Maintains Bullish Stance on Thyssenkrupp Amid Share Price Weakness

Analysts reaffirm Buy rating, citing operational progress and potential steel unit bids as catalysts, despite stock hitting a 52-week low.

Despite a steep decline that has pushed Thyssenkrupp shares to a fresh 52-week low, analysts at Jefferies are holding firm to their positive outlook. The equity has shed approximately 25% of its value since the onset of the conflict in Iran, but the investment bank views the current price level as a strategic opportunity.

On Monday, Jefferies strategist Tommaso Castello reaffirmed a "Buy" recommendation for the German industrial conglomerate. The firm's price target stands at 13 euros per share, implying a potential upside of nearly 67% from the previous closing price of 7.79 euros. According to the analysis, the market is currently overlooking meaningful internal progress being made by the company.

Operational Improvements Underpin Analyst Confidence

The research note highlights two key operational developments that support the optimistic case. The first is the planned exit from the steel company HKM, a move expected to significantly reduce the group's fixed-cost base. Secondly, a recently secured wage agreement with labor unions is seen as a positive signal, indicating that the restructuring of the steel division is proceeding on stable footing.

Jefferies also identifies a potential catalyst for the stock: renewed bidder interest in the steel business. Should a concrete suitor emerge, it could either replace or complement the stalled negotiations with Jindal Steel, which have been deadlocked for months.

Diverging Views in the Analyst Community

The broader analyst sentiment toward Thyssenkrupp remains divided, underscoring the market's mixed assessment of its ongoing transformation. Not all institutions share Jefferies' conviction. JP Morgan downgraded the stock to a "Neutral" rating on March 9, while Barclays assigned an "Underweight" recommendation in late February.

The investment landscape for Thyssenkrupp thus presents a contrast. External pressures from geopolitical uncertainty weigh on one side, while internal operational repair measures provide a counterbalance. The future trajectory of the share price is likely to be heavily influenced by whether the speculated interest in its steel unit materializes into a substantive offer, a factor that could determine when the equity finally establishes a firm bottom.