thyssenkrupp: The long-awaited steel restructuring is finally taking concrete shape
The long-established industrial and steel giant is at an important point in its recent history. While geopolitical uncertainties, namely the war in Ukraine and Iran, and the economic slowdown caused by higher energy prices could weigh on the overall market, investors are focusing on the Group’s strategic realignment. The planned separation of the steel division, which has been hit hard by past crises, is within reach thanks to support from the Krupp Foundation. The share, currently trading around EUR 13.95, reflects this challenging transformation.
Operationally, the picture remains rather mixed, shaped by extensive restructuring and new international partnerships. The foundation’s chair, Ursula Gather, recently emphasised a favourable window of opportunity for the steel spin-off, supported by a restructuring collective agreement taking effect and improved conditions in Europe. Analysts at JPMorgan recently raised their price target to EUR 17 and forecast significantly rising profits for the European steel industry from 2027 onwards. However, it remains to be seen how the operating business will develop ahead of the publication of the annual report on December 8.
With a market capitalisation of almost EUR 9 billion and a price-to-earnings (P/E) ratio of just under 30, the market is pricing in some advance credit for the long-established company’s future prospects. Those investing in thyssenkrupp are betting on a successful structural restructuring and a lasting separation of its capital-intensive operations. If the steel spin-off is implemented without unforeseen obstacles, the share still offers potential.
From a purely technical perspective, the share could rise further towards EUR 18–19, provided it breaks through the EUR 16 mark. The uptrend remains intact. However, if it falls below EUR 11.40, it will also drop below the 200-period SMA, ending the long-term uptrend. It could then even slide below EUR 10.
From the iron and steelworks of the Ruhr region, we move to the fibre-connected world of the magenta-coloured telecoms giant.
Deutsche Telekom: Fibre push and competitive pressure
Europe’s largest telecommunications group continues to push ahead vigorously with its digital infrastructure, setting new standards in fibre rollout. The company recently announced that it had commissioned fibre rollout for around 7 million residential units, underlining the enormous investment required in its domestic market. With additional investment of EUR 800 million over the next three years, the Group aims to consolidate its market-leading position. Meanwhile, the share is holding fairly steady around EUR 25.50, defying a market experiencing sharp fluctuations. However, it should not be forgotten that the share had already traded above EUR 34 in February this year.
Alongside the massive network expansion, the Management Board is increasingly focusing on artificial intelligence and automation to streamline the internal cost structure. By 2030, the company plans to reduce indirect costs by around EUR 2.5 billion compared with 2023, while gross savings of EUR 1.1 billion are envisaged for 2027 alone. In addition, Telekom is examining a European spectrum bid for mobile satellite communications from 2029 together with partners such as Orange and Vodafone. These strategic initiatives are intended to help mitigate the looming pricing pressure. They also aim to counter competitors such as Starlink and any pressure they may exert.
Analysts are predominantly positive about the Group’s prospects, with Deutsche Bank setting a price target of EUR 40 and Barclays taking a slightly more conservative stance at EUR 32. Despite potential pressure from rising refinancing costs, the Group impresses with cash flows that have so far proved reliable.
Looking at the chart, the share may now have found a bottom below EUR 25, leading to a rebound. If it breaks through the EUR 27.50 level, it would first cross above the 50-period SMA. After that, the 200-period SMA still awaits at EUR 28.59. If the price also moves above this, the area around EUR 30–32 could be the next target zone. It could even go higher towards Deutsche Bank’s price target. However, the share must not fall below EUR 24.30 again, as that would risk a slide towards EUR 18–20.
We leave the European telecommunications networks behind and look at a company focused on the critical raw materials of the future for technology, AI and defence!
Almonty Industries: Historic mine start-up and rebound opportunity for the tungsten champion
After more than three decades, the legendary Sangdong project in South Korea is shining once again and delivering its first commercial tungsten concentrates from underground.
Almonty Industries has positioned itself at the centre of a global raw materials shift whose urgency, given Chinese export bans and tighter US defence requirements, could hardly be greater.
However, the share is currently in a sharp consolidation phase after its steep rise from just under USD 11.00 to around USD 19.50. After a pronounced pullback since September 10, the stock is trading around USD 8.90, which forms a strong bottom and a starting point for contrarian considerations.
Operationally, the wheels at Almonty continue to turn at an impressive pace, underpinned by CEO Lewis Black’s newsletter and a solid financial position. The Sangdong mine will soon run continuously around the clock, while planning for Phase II and highly efficient molybdenum and tungsten oxide processing advances in parallel. With long-term offtake agreements and excellent positioning in conflict-free regions, the company generates great margins and secure cash flows. The reactivation of Los Santos in Spain and the new strategic joint venture in Rwanda bring additional upside potential.
From a purely technical chart perspective, the recent downward move could weaken significantly over the next few days, as strong horizontal support levels lie around USD 8.00 and, below that, between USD 7.00 and USD 7.50. An imminent rebound could quickly catapult the share back towards the open gap at around USD 12.70. A sustained breakout above that would quickly bring prices of around USD 15.00 to USD 16.00 into focus, while the chart suggests that the long-term potential even extends to USD 19.00 or USD 20.00. In hindsight, this could prove to be an attractive entry point. Time will tell, but several factors currently support that view.
Conclusion
thyssenkrupp offers an exciting restructuring prospect with the forthcoming steel spin-off, but it still needs to back this up operationally with new figures in the upcoming annual report. Deutsche Telekom aims to impress with major fibre-optic and AI efficiency programmes, but must hold its own against growing technological competitive pressure, including from Starklink. As a strategic tungsten producer, Almonty Industries benefits from strong geopolitical demand, while its recent consolidation could set the stage for a potential rebound.
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