(more details from the study and the share price performance)

FRANKFURT (dpa-AFX Broker) - An optimistic study on Aurubis by the Metzler bank could have been a liberating blow for the copper smelter's shares on Wednesday. With a price jump of 5.5 percent to 74.35 euros in the morning, the stock overcame a downward trend that began in early February 2023. This could now lead to an upward breakout.

The multi-year low in this trend movement was slightly below EUR 57.40 in March 2024. Since then, the share has risen again to the line currently marking the downward trend at around EUR 73 to 74.

Metzler analyst Thomas Schulte-Vorwick has now upgraded the MDax company's shares from "hold" to "buy". He raised the price target from EUR 75 to EUR 86 and, despite the fact that the future management team is still unclear, still sees scope for price gains of just under 16 percent.

"Despite the recent upward movement, we currently consider the risk/reward ratio for the share to be favorable, as the company should benefit operationally from the recent significant rise in precious metal and industrial metal prices," he wrote. This development has not yet been taken into account in the current average estimates of analysts, he assumes, and has also raised his own estimates.

If prices remain at the increased level in the coming months, then it would be realistic for Aurubis to raise its annual targets.

Schulte-Vorwick revised his forecast for operating earnings before taxes in fiscal year 2023/24 upwards by 20 percent, which, according to his own statements, is now 21 percent above the consensus calculated by the Bloomberg news agency.

However, the slight headwind from smelting and refining charges and the scrap business should only have a slight negative impact on earnings, the expert added./ck/bek/mis

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