ThyssenKrupp: a 'positive' split, UBS says

(CercleFinance.com) - This morning UBS confirms its buy rating on the share of the German industrial group ThyssenKrupp, which announced a split yesterday.
The broker maintains its 12-month target price at 30 euros.

ThyssenKrupp has announced its intention to split into two listed entities (thyssenKrupp Materials, and thyssenKrupp Industrials) "to increase efficiency and unlock value," an intention that is deemed "positive" by UBS, even though it is surprised that this announcement comes before the group replaces its boss.

According to UBS, this new organisation should enable the market to better value the group's different assets using the sum-of-parts method. In addition, the management of both companies should become more readable.


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