BofA: Bullish on Metlen, Buy Rating with 22% Upside Potential

Bank of America (BofA) maintains a positive outlook on Metlen, reiterating its Buy recommendation for the stock. Despite reducing the target price to €63 from €66, BofA emphasizes that Metlen remains on a strong growth trajectory.

First-half 2024 results showed EBITDA of €445 million, down 6% year-on-year, impacted by a Power Projects project in the UK. Excluding this loss, normalized EBITDA would have been €577 million, exceeding expectations.

BofA reduced its 2025 EBITDA forecast by 12% to €1.036 billion and net profit to €565 million. However, for 2026 and 2027, forecasts are more optimistic, with EBITDA exceeding €1.2 billion and net profit above €660 million.

BofA believes Metlen's long-term dynamics remain strong, with the medium-term plan projecting EBITDA above €2 billion, based on critical metal production, circular metals technology, and entry into the defense sector.