Jefferies downgraded Outokumpu to hold from buy, citing stalled earnings momentum despite the stock's 62% rally over the past year. The firm cut its EBITDA forecasts for 2025 and 2026, pointing to weak European demand and challenges in the Americas.

The brokerage highlighted that Outokumpu’s valuation has risen without matching improvements in near-term outlook. Its shares now trade above their 10-year average, with a 6.2x EV/EBITDA multiple compared to a historical 5.3x.

Jefferies raised its price target to €5 but expects earnings to pick up only in the second half of 2026. It sees limited risk-reward upside in the near term and does not anticipate capital returns or early-cycle stainless steel demand recovery.