De Nora Shares Plunge on Kepler's 2026 Warning

Key Developments

Shares in Italian electrode manufacturer Industrie De Nora dropped by as much as 11.2% on Tuesday. The sharp decline followed a report from brokerage firm Kepler Cheuvreux, which warned that the company is approaching a difficult 2026.

Analyst Outlook

Kepler Cheuvreux projects a strong finish to fiscal year 2025 for De Nora, with an anticipated EBITDA margin exceeding 19%, driven by its water division. However, the firm forecasts a lacklustre fiscal year 2026, burdened by a decline in its electrode technologies and a steep fall in its energy transition business.

Market Reaction and Price Target

The market responded immediately to the negative long-term forecast. In response to the outlook, Kepler Cheuvreux reduced its price target for Industrie De Nora to €8.1 from €8.6. The brokerage maintained its hold rating on the stock.

Summary

While De Nora's short-term performance appears robust, the forecast for 2026 has created significant investor uncertainty. The future performance of the company's core technology and energy divisions will be a critical factor for market sentiment moving forward.

FAQ

Q: Why did Industrie De Nora's stock price fall sharply?
A: The stock price fell over 11% after Kepler Cheuvreux issued a note warning of a challenging financial year in 2026 due to expected declines in key business areas.

Q: What is the new price target for De Nora stock from Kepler Cheuvreux?
A: Kepler Cheuvreux lowered its price target on De Nora to €8.1 from a previous €8.6, while keeping a hold rating.

Source: Investing.com