SSAB AB

SSAB AB

den 25 november 2016

Important legal information

SSAB is a leading global company in the highly specialized steel industry. The company is a leading developer and producer of Advanced High-Strength Steels (AHSS) and Quenched & Tempered Steeps (Q&T), strip, plate and tubular products, and construction solutions. SSAB has a cost-efficient and flexible production system and provides services for better performance and sustainability for lighter end-products with increased strength and longer lifespan.

A low steel demand, falling plate steel prices and strong competition from imports of Chinese steel has put pressure on SSAB’s performance this year. In Q2 and Q3, results stemming from the North American operations did not prove to be as good as expected but last week, the large US producers, SSAB among them, decided to rise the price of plate steel to USD 50 per ton. The decision was driven by expectations of a boost in steel demand due to sayings of Mr. Donald Trump, elected United States 45th president on November 8th 2016, to initiate large infrastructure projects in the United States in future years.

 

The share price of SSAB A-shares has rallied since and continued in the most recent days to another new year high of SEK 37,50 on November 23rd. The company has more than doubled in share value compared to the low trading quotes seen in December 2015 – January 2016. The performance makes SSAB significantly the best performing share among the Swedish large caps included in the OMXS30-Index this year.

 

According to SSAB Chief Operating Officer, Martin Lindqvist, the company sees strengthened momentum through Q1 2017 and according to Bloomberg data, financial analyst recommendations are mixed with an overweight of expressed skepticism for the share performance in 2017.

 

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The Bloomberg 12-month target price of the SSAB A-share is set to SEK 31,66 and Bloomberg consensus figures show 6 analysts set SSAB AB on BUY, 6 on HOLD and 10 on SELL recommendation.

 

 

2022-12-04 05:41:16