Berenberg upgraded Umicore to Buy from Hold, raising its price target to EUR23.50 from EUR20.00. The investment bank cites the company's strong historical correlation with precious metals prices and its decreasing reliance on battery materials as key drivers for the call.

The firm's regression analysis suggests substantial upside, indicating Umicore's stock could potentially double based on current metals prices. Berenberg also noted supply constraints from the Impala Canada mine and extended gasoline engine lifespans in Europe and the U.S., which should support palladium prices and earnings in its Catalysis division.

Berenberg's forecasts are above consensus, with 2027 EBITDA projections exceeding estimates by about 6%. The bank believes Umicore could narrow its valuation gap toward peers like BASF. Investors will watch for the company's next earnings report to see if this metals-driven thesis holds.