Thyssenkrupp -8% as split failure prompts DZ, AlphaValue downgrades

|About: thyssenkrupp AG (TYEKF)|By:, SA News Editor

Thyssenkrupp (OTCPK:TYEKF) is the biggest decliner on Germany's DAX benchmark, -8% as DZ Bank and AlphaValue downgrade the stock following the steelmaker's strategy shift after the Tata Steel joint venture project fell apart.

DZ Bank analyst Dirk Schlamp dwongrades the stock to Hold from Buy, citing reintegration of the steel business in "a more difficult economic environment" and a new sum-of-the-parts analysis which lowers its fair value estimate to €12.50 from €15.

AlphaValue lowers its rating to Sell from Reduce and cuts its price target to 10 from 13.70, saying pulling the European steel unit back into the company (targeted for FQ3) will make the balance sheet "very much worse," and proceeds from the listing of the elevator unit will be "desperately needed to rebuild Thyssenkrupp’s balance sheet."

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