Morgan Stanley upgraded the target price for Mytilineos to 45 euros/share (a price that incorporates 26% upside) and maintained a buy recommendation. It also said that in a positive scenario the share price could even reach 60 euros/share.
This strategic synergy between the energy and metals sectors enables Mytilineos not only to survive in this volatile environment, but to consistently secure new, ever-higher levels of profitability.
This is also confirmed by the Morgan Stanley analyst, as he is the first to raise his forecast for the profitability of 2023 to levels above 1 billion euros. Specifically, the Morgan Stanley analyst increases his EBITDA forecast to 1.033 million euros (from 968 euros) in 2023, and predicts an increase close to 1.15 billion euros in 2024 and 2025.
Mytilineos’ high profitability from other activities is successfully reinvested in the development of a now critical RES portfolio, outside and inside Greece. Morgan Stanley values this portfolio (MRenewables) at over 2.2 billion euros, as it sees the company significantly outperforming the competition, based on a well-differentiated model (both in terms of geographic spread and project development stage) that it has chosen for the development of its RES.
Moreover, Morgan Stanley has included Mytilineos among the top companies operating in the industrial metals sector with the greatest upside prospect (26.5%), behind only Norsk Hydro.
