BofA Lifts Thyssenkrupp Price Objective Amid Rebasing of Steel Business Earnings

08:10 AM EDT, 08/20/2026 (MT Newswires) -- BofA Global Research on Thursday raised its price objective for thyssenkrupp (TKA.F) as it took into account "bridge" elements to rebase the company's steel business earnings higher. Alongside its recent fiscal third-quarter results release, the German industrial conglomerate said its thyssenkrupp Steel Europe unit plans to hold a capital markets day at the end of September. "As with tk Marine and tk Accelis, we see this as a likely prelude to a partial exit of steel via an IPO; Management confirmed on a recent earnings call that an IPO is Plan A. We analyse key levers that could drive a market reassessment of Steel. Broadly, we see credible path from EBITDA of c. EUR440 mn to c. [over] EUR1.5 bn. A business which we previously assumed had limited equity value, could now be worth [over] EUR4-5 bn (c. half market cap)," the research firm said. "Overall, we estimate total potential increase in EBITDA earnings power of c. EUR1.25-1.5 bn (EUR 147-176/t). Compared to average EBITDA of c. EUR440 mn in 2023-2025, this is major rebasing." Analysts considered the European Union's new tariff rate quota system, as well as thyssenkrupp Steel's restructuring and Hüttenwerke Krupp Mannesmann steel plant exit as the elements for the potential EBITDA uplift. The price objective was thus increased to 22 euros from 19 euros, while the stock's buy rating was reiterated. EPS estimates for fiscal years 2027 and 2028 were also lifted.