4 steel stocks to buy as pullback creates a buying opportunity: UBS
UBS upgraded European steelmakers Salzgitter, ArcelorMittal, and voestalpine to 'buy', maintaining its 'buy' rating on SSAB, citing EU import quotas tightening supply. Price targets set: €71 for ArcelorMittal, €71 for Salzgitter, €64 for voestalpine, and 120 SEK for SSAB. UBS expects EU hot-rolled coil prices to rise, forecasting €820/tonne in 2027 and €805/tonne in 2028. Third-quarter earnings are expected to be weak due to seasonal demand and higher energy costs.
How this was made
The 30-second read
Why it matters
The upgrades and price targets suggest a bullish stance on the sector, with implied upside ranging from 21% to 61% for the named companies.
Market read
Analyst upgrades could trigger buying interest in the highlighted steel stocks and influence broader industrial equities.
What to watch
Possible delays in blast furnace restarts and legal challenges at Taranto could limit supply recovery.
Background
UBS analysts revised outlooks for four European steelmakers amid new EU import quotas that limit duty‑free steel imports.
Ticker impact
UBS upgraded ArcelorMittal to "buy" and set a €71 price target.
likely upward pressure as investors price in the new target.
UBS expects supply tightening to boost earnings; price target implies ~31% upside.
Market effects
Tighter EU steel supply may lift prices and benefit the broader steel sector.
European equities, especially industrials, could see gains.
Potential ripple effect on global steel pricing and related commodities.
Counterpoint
If demand softens due to higher rates, the supply tightening may not translate into price gains.
Key entities
- analyst_firmUBS
Provided upgrades and price targets for the steel companies.
- regulatory_bodyEuropean Union
Implemented import quotas that drive supply constraints.
