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Aurubis share: UBS lowers price target to 60 euros

Aurubis shares are under pressure! 😟 UBS has downgraded the company's shares from "Neutral" to "Sell" and drastically lowered the price target from 65 to 60 euros. Analyst Daniel Major points out that the shortage on the markets for refined copper and copper concentrates will lead to lower treatment and refining charges and refining margins.

This development could severely impact Aurubis' earnings potential $NDA (-3,06%) and jeopardize the consensus estimates. The high investments in the next two to three years could also lead to a negative free cash flow and rising net debt. This will worsen the risk/reward ratio for the share.

Aurubis shares are currently down around 4.23 percent at 82.55 euros. How do you see this? Is now the right time to buy or wait and see?

4 Commenti

finanzperpetuum@finanzperpetuum

Aurubis: the misjudged turnaround candidate

Copper is a key ingredient for e-mobility and modern power grids. Although Aurubis produces this metal, the stock market is only taking cautious note of the company. This is not a bad thing for investors.

Source: https://themarket.ch/analyse/aurubis-der-verkannte-turnaround-kandidat-ld.12754

Who is right now?

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Business News Germany@Business_News

@finanzperpetuum Thanks for your comment, definitely interesting and valid points. The article is about the opinion of a single analyst as news and of course analysts can be wrong. In the end, only time will tell.

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Smudo@Smudeo

@finanzperpetuum unfortunately listed in Germany, energy, tax, CO2 and politics prevent investor interest here

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finanzperpetuum@finanzperpetuum

Key points from the article (created by Gemini):

Core business and competitive advantage:

Copper and more: Aurubis is a leading producer of copper, but also of other metals such as gold, silver and sulphuric acid.
Three pillars: The business is based on the processing of copper concentrate, the recycling of scrap metals (Aurubis is the world leader in this field) and the product business with copper cathodes.
Growth through recycling: Aurubis is investing heavily in "Recycling 2.0", i.e. the processing of complex metal combinations from electronic scrap. This requires a great deal of expertise and creates a competitive advantage.
Financial situation:

Solid growth: sales and profit (EBITDA) have risen in recent years.
Margin improvement potential: The EBITDA margin could be improved through greater integration of the value chain (e.g. own copper mines).
High return on capital employed: The return on capital employed (ROCE) is good and should continue to rise.
Low debt: Aurubis has low net debt and therefore financial scope for further investments.
Strategic initiatives:

Investments in growth: Aurubis is investing in new facilities, particularly in the recycling sector (e.g. in Belgium and the US).
Efficiency and sustainability: The company emphasizes efficiency and sustainability in its production processes.
Security: Following cases of fraud in the past, Aurubis has significantly increased its security measures.
Share valuation and outlook:

Moderate valuation: Aurubis shares are currently not overpriced, but they are not a bargain either.
Turnaround potential: The article sees Aurubis as a turnaround candidate with potential for higher profits and a better valuation.
Risks: Possible risks include fluctuating energy and commodity prices as well as delays in investment projects.

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