European Daily Focus: Wednesday, 01st July 2026

Research evidence excerpt

European Daily Focus: Wednesday, 01st July 2026

nce AugDana26 -Point,27, 2026CA

margins and metal tailwinds. Although underlying demand in Europe remains soft Source : Deutsche Bank

and side effects of the conflict in the Middle East remain a risk for the economy, we

believe policy measures (CBAM and EU safeguards) should support volumes and

Figure 5: Global Focusprices for European domestic players. Although wider market risks have been

rising, we continue to see considerable upside potential, as: (1) cyclical leverage to Sunmi

A global gateway to merchant BIoT and AI transformation; initiate with Buy

EU prices and the planned trade policy is high and should support prices and Early Morning Reid

margins after demand dropped to a 15-year low; (2) cash-generation capability Macro Strategy

remains solid, and (3) management targets another c.E200m+ of structural Source : Deutsche Bank

earnings improvements. This should not only be driven by efficiency and cost

improvement but also growth in the Alloys business. Underpinned by Aperam's

strong FCF yield of 14-22% 2027-28E, we retain Buy.

OUTOKUMPU (OUT1V.HE) - Q2 preview - Policy tailwinds drive European

turnaround

Bastian Synagowitz: Tgt EUR5.20. Last Close EUR5.04, Hold. Outokumpu is due

to report Q2 results, and we expect a significant sequential improvement driven by

better volumes, as well as prices and metal tailwinds. Together, these should

support the European business to get back to break even while both Americas and

Ferrochrome continue to perform strongly. Although underlying demand in Europe

remains soft and side effects of the conflict in the Middle East remain a risk for the

economy, we believe policy measures should support volumes and prices for

European domestic players.