Bank of America (BofA) maintains a positive stance on METLEN, reiterating its “Buy” recommendation and a price target of 52 euros, implying an upside potential of roughly 24% from current levels.
The US investment bank upgrades its investment narrative on the company, arguing that METLEN’s growth outlook has strengthened meaningfully. This improvement is attributed to higher aluminium prices, the benefits derived from its hedging strategy, increased market premia, and the inclusion of gallium production in its valuation framework.
Particular emphasis is placed on gallium, which Bank of America describes as a key emerging value driver for METLEN. The company’s production facility is already under construction and is expected to come online between 2027 and 2028, with an annual capacity of around 50 tonnes.
According to the bank’s estimates, this segment could contribute approximately 80–90 million euros to EBITDA, with potential upside if performance exceeds initial assumptions. By 2028, gallium alone could account for roughly 6%–7% of the group’s total EBITDA.
Bank of America also underscores METLEN’s growing strategic importance in Europe’s critical metals landscape. The company is seen as capable of supplying a substantial share—if not the entirety—of Europe’s gallium demand, thereby strengthening the continent’s autonomy in a material considered vital for industrial and geopolitical security.
Gallium is widely used in advanced technologies such as artificial intelligence systems, 5G networks, semiconductors, and defence applications. Its strategic relevance is further amplified by extremely tight global supply conditions, with China controlling an estimated 98%–99% of production, a dominance that enhances the importance of alternative Western sources.
The bank also notes that gallium prices in Western markets are already above its model assumptions, indicating further upside to profitability in the coming years. It also highlights expansion potential in other critical metals such as scandium and germanium, which could add new growth drivers and strengthen METLEN’s long-term outlook. Against this backdrop, it raises its medium-term forecasts, projecting higher EBITDA through 2028.
Source tovima.com
