ThyssenKrupp: Credit Suisse remains a buyer

(CercleFinance.com) - Credit Suisse has examined ThyssenKrupp once more after the German industrial group, which is in the midst of a strategic overhaul, has seen an activist investor enter into its capital.


Maintaining a buy rating ("outperformance") on the stock, analysts are also standing by their target price of 28 euros, meaning upside potential of around 25%.

Analysts still believe that ThyssenKrupp has plenty of levers at hand to improve profitability and cash flow, such as “accelerated restructuring (especially in Industrial Solutions and head office), capex cuts, reduced IT spend and asset sales (with an IPO of the Steel JV and the Materials Services division including AST for starters)...”

For example, Credit Suisse expects the group to float its Steel division, and believes that it would be playable to do the same (partially) with its Lifts division.

Admittedly, "This is a stock which is very out of favor currently, but is likely (to) become very newsflow driven in the coming months," the report predicts.



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