The German mega-conglomerate Thyssenkrupp is planning to slim down its business drastically in an attempt to cut down losses from the global coronavirus pandemic. Several conversations have revealed that the company is planning to sell some of its steel assets as it is struggling to handle the negative impact of COVID-19 on the business.
Thyssenkrupp’s Chief Executive Officer, Martina Merz, is said to take drastic measures to save the company and that could also mean shrinking or restructuring the business. The company is trying to earn the trust of investors by joining forces with different partners that will help Thyssenkrupp to strengthen its steel divisions.
Although the company will reduce its size, it believes that it will soon come back stronger due to the changes it plans to introduce to its business. The divisions that will still be developed by Thyssenkrupp will be Materials Services, Industrial Components and Automotive Technology. These are the businesses that account for 43% of the company’s total sales.
As for its steel and marine systems, the company plans to rely on its new partners for the development of the division that will still remain part of the Thyssenkrupp group. The steel talks have also caused Thyssenkrupp’s shares to go up 6.3% at the beginning of the week, which made the company the top gainer in the German mid-cap index MDAX.
Analyst stock price forecast and recommendation
According to Investing.com, the data gathered by 17 analysts who are offering 12-month price forecasts for Thyssenkrupp AG shows a median target of 8.000, with a highest target of 11.000 and a low estimate of 3.300. Thyssenkrupp AG’s overall consensus estimations are based on the recommendations of the 17 polled analysts.
Thyssenkrupp AG’s stock is rated as “Buy” by 10 analysts, “Sell” by 2 of them and 5 analysts are neutral when it comes to the company’s stock.