Credit Suisse boosts Acerinox's target price in full negotiation with Aperam

MADRID, 6 Jun. (EUROPA PRESS) -

Credit Suisse has improved the target price of Acerinox, from 17 euros to 18 euros per share, with an 'overweight' recommendation, due to the robust performance of the steel company, in full negotiations of the group for a possible merger with Aperam.

Acerinox shares were boosted this Monday on the Stock Market by this support from Credit Suisse, rising 1.57% at 11:48 am, to 11.995 euros per share, after dropping more than 3% last Friday.

In their report, the bank's analysts highlight that Acerinox offers a "solid" business case along with a "healthy" balance sheet and "good returns" for shareholders.

In addition, they underline that the company is less exposed to European volume risks in the event of a possible recession in the European Union.

Likewise, Credit Suisse raises its estimates for the group's gross operating profit (Ebitda) by 21% and 4% for 2022 and 2023, respectively. "Earnings momentum so far has remained positive, helped by moderate inventories, effective safeguard measures and cost control," he adds.

Last Friday, Acerinox and Aperam confirmed that they had "recently" entered into "very preliminary" conversations regarding a possible merger operation between the two groups, although they stressed that "there is no certainty that such an agreement will be reached or, if so, In what terms?

In different communications to the market, the companies indicated that the analysis of the possible operation "is in a very initial phase, and there is currently no agreement on its structure, perimeter and terms."

"There is no certainty that the parties will reach an agreement or, if applicable, under what conditions," Acerinox said in a statement to the CNMV, while Aperam added that, in accordance with its legal obligations, it will inform the market " when necessary."

The Mittal family is the main shareholder of steel giant ArcelorMittal, which controls around 40% of Aperam's voting rights. Meanwhile, Corporación Financiera Alba is the main shareholder of Acerinox, with almost 18% of its capital.

Together with the Mittal family, Aperam's shareholders include M

In the case of Acerinox, in addition to Alba, its main shareholders are businessman Daniel Bravo, with 5% of the capital, and the South African Industrial Development Corp. (IDC), with 3.26% of the stake.