BUZZ - Bank of America reinstates OttoKump's rating to "Buy", citing restored pricing power and cost advantage

September 25 - ** Bank of America (BofA) has reinstated its rating for Finnish steel company Outokumpu OUT1V.HE as "Buy", citing the company's ability to benefit from the potential boost brought by EU safeguard measures, the operating leverage effect, and the advantages of integrated ferrochrome production

** BofA expects that as the Carbon Border Adjustment Mechanism and stricter safeguards help European producers regain pricing power, Outokumpu will benefit from the structurally tighter supply situation in the European market

** The report added that Outokumpu owns the Kemi chromite mine and the integrated Kemi-Tornio production chain, which provides the company with a structural cost advantage

** The bank believes that the group's strategy to expand into advanced materials and high-margin alloy products will improve profitability over time and reduce cyclicality

** The institution further pointed out that its balance sheet position enables more disciplined capital allocation

** As of 11:00 GMT, Outokumpu's share price was up about 4% at 5.62 euros, still leaving upside potential compared to BofA’s target price of 6.70 euros

** According to London Stock Exchange Group (LSEG) data, among 14 analysts covering Outokumpu, 7 have a “strong buy” or “buy” rating, 4 have a “hold” rating , and 3 have a “sell” or “strong sell” rating

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