Expressing optimism for the company’s future prospects, Bank of America (BofA) Securities has initiated coverage of Metlen. The bank recommends a “Buy” rating, with a target price of €66.00. The coverage initiation follows the completion of the corporate restructuring and the listing of its shares on the main market of the London Stock Exchange (LSE), while also covering their secondary listing on the Greek stock exchange.
BofA positively evaluates Metlen’s strategy, focusing on strong prospects in the aluminum sector, with a price target of $3,250/ton. The valuation is based on a 9x EBITDA multiple and 1x DCF fair value, reflecting the bank’s confidence in the company’s strong growth in the coming years. Metlen’s recent listing on the London Stock Exchange (LSE) creates prospects for the stock’s inclusion in international indices, which could serve as a catalyst for increased institutional investor interest, according to the report. Additionally, the enhancement of production capacity through alumina expansion, strategic partnership with Rio Tinto, and investments in Renewable Energy Sources further strengthen the positive investment narrative.
BofA also emphasizes the Circular Metals project, which involves technology for recovering metallic oxides from secondary sources, as well as Metlen’s defense sector activities, targeting approximately €150 million EBITDA from MRO (maintenance, repair, and operations) services and new technologies, such as unmanned systems. Finally, it highlights the strategic decision to sell the company’s renewable energy portfolio for $815 million, aimed at recycling capital into higher-return activities, which is expected to improve capital efficiency and strengthen future financial results.
BofA: Initiates coverage of Metlen with “Buy” recommendation and €66 target price
Key points:
- Metlen completed corporate restructuring and its shares now trade on the main market of the London Stock Exchange (LSE).
- Coverage initiation with “BUY” recommendation. Target price: €66.00
- Coverage also includes the secondary Greek listing of the Plc shares.
- Optimistic aluminum forecast: target at $3,250/ton.
- Valuation based on 9x EBITDA and 1x DCF fair value
- Index inclusion after LSE listing – potential catalyst for increased investor interest.
- Volume development: alumina expansion, Rio Tinto partnership, renewables.
- Circular Metals: technology for recovering metallic oxides from secondary sources.
- Defense: targeting ~€150 million EBITDA through MRO activities and new technologies (e.g., unmanned systems).
- Sale of renewable energy portfolio for $815 million, aimed at capital recycling into higher-return activities.
