Shares of Danieli & C Officine Meccaniche fell as much as 7.74% on Tuesday, with the stock opening at €62.05 before touching an intraday low of €58.6, as investors reacted to a broker downgrade ahead of the company’s full-year results due September 25.
The decline followed a note from Kepler Cheuvreux, which removed Danieli from its Italian top picks list and reduced its full-year EBITDA forecast by 10% to €447 million ($519 million). The brokerage said it no longer expects the company to surpass its own guidance, citing delays and logistical challenges that likely weighed on second-quarter revenue and margins. Kepler maintained its Buy rating but trimmed its price target by 4% to €80.
A Milan-based trader attributed the move to profit-taking after Kepler’s downgrade, while the company’s recently reported half-year net income showed a sharp year-over-year contraction, keeping institutional sentiment cautious. Prior to Tuesday, sell-side analysts at Berenberg Bank and Kepler Capital had both maintained Buy ratings on the stock.
The broader market offered little support, with U.S. equity benchmarks trading essentially flat. Danieli operates in Italy’s industrial machinery sector, which faces broader headwinds from subdued global steel capital expenditure cycles and ongoing margin pressure.
