Julia Winckelmann, an analyst from Stifel Nicolaus, maintained the Buy rating on SGL Carbon (0MPL – Research Report). The associated price target remains the same with €8.40.
Julia Winckelmann’s rating is based on several compelling factors that suggest a positive outlook for SGL Carbon’s stock. Despite the challenging market conditions, particularly in the semiconductor and automotive sectors, the company is positioned to benefit from its strategic initiatives. The upside potential is significant, with an expected 83.8% increase to the price target, indicating that the current stock price is undervalued.
Moreover, SGL Carbon’s role as a major supplier of graphite to the SiC wafer market positions it well to capitalize on the anticipated recovery and growth in the electric vehicle sector. Additionally, the company’s joint venture with Brembo for ceramic brake disks is not fully reflected in its current valuation, offering further upside potential. These factors, combined with a disciplined approach to managing debt and restructuring costs, underpin the Buy rating recommendation.
0MPL’s price has also changed moderately for the past six months – from EUR5.500 to EUR3.920, which is a -28.73% drop .