Analyst Vanessa Jeffriess of Jefferies maintained a Hold rating on RHI Magnesita NV, retaining the price target of p3,280.00.
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Vanessa Jeffriess’s rating is based on several factors impacting RHI Magnesita NV’s performance. The company is facing a challenging industrial environment, with significant declines in project revenues in the Glass and Non-Ferrous Metals (NFM) sectors. This has led to the lowest EBITA levels since the first half of 2021, and while there is some expectation of improvement in the Steel sector in the second half, the overall pricing pressure remains a concern.
Furthermore, the full-year EBITA forecast for 2025 has been adjusted downward, with leverage expected to increase, which is not favorable. Achieving the revised targets requires a significant performance in the second half of the year, supported by a more favorable order book in NFM, though not in Glass. Despite potential levers to improve performance, there is considerable work needed, and a negative market reaction is anticipated, along with consensus downgrades in EBITA forecasts for 2025 and 2026.
In another report released on July 26, TR | OpenAI – 4o also downgraded the stock to a Hold with a p3,172.00 price target.