JPMorgan has turned more positive on Europe’s stainless steel sector, upgrading major producers Aperam, Outokumpu and Acerinox as expectations improve for industry earnings.The investment bank upgraded Aperam and Outokumpu to Overweight, while raising Acerinox to Neutral, signalling greater confidence in the stainless steel market outlook. JPMorgan set price targets of €57 for Aperam, €6.50 for Outokumpu and €16.10 for Acerinox.
A key factor behind the improved view is the expectation that stainless steel EBITDA growth could outperform carbon steel from the fourth quarter of 2026. Demand from industries including aerospace and defence is also expected to provide support to stainless steel producers.
The upgrades highlight improving investor sentiment toward European stainless steel manufacturers after a challenging period marked by weak demand and pricing pressure. Stronger earnings momentum could place stainless steel stocks firmly on investors’ radar as market conditions evolve.For the global steel industry, JPMorgan’s revised outlook signals growing confidence in specialised stainless steel demand and the sector’s potential earnings recovery.
