Adahna Ekoku, an analyst from Morgan Stanley, maintained the Sell rating on Outokumpu Oyj. The associated price target is €3.60.
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Adahna Ekoku has given his Sell rating due to a combination of factors impacting Outokumpu Oyj’s financial performance. The company reported a disappointing third quarter in 2025, with adjusted EBITDA falling 16% short of expectations, primarily due to challenges in the Ferrochrome division, exacerbated by a weaker dollar and rising electricity costs. Additionally, the company’s free cash flow was negative, missing forecasts and resulting in a higher-than-expected net debt level.
Looking ahead, Outokumpu’s guidance for the fourth quarter of 2025 suggests a further decline in adjusted EBITDA, with anticipated reductions in stainless steel deliveries and additional costs related to maintenance and the implementation of a new ERP system. These factors, along with the postponement of significant investments due to unfavorable changes in Finnish tax policies, contribute to a cautious outlook, prompting the Sell rating as the company’s shares are expected to underperform in the sector.