Umicore posted by far the strongest gain on the STOXX Europe 600 index on Tuesday following an upgrade by Goldman Sachs, which said it was increasingly confident about the stock's risk/return profile.

Shortly before noon, the Belgian industrial materials group's share price was jumping 13%, hence returning to levels not seen since last September.

In its research note, Goldman justified its optimism by citing what it sees as a more realistic view of the battery materials market held by the company's management, as well as its strategy, which is now more focused on profitability than growth.

The US investment bank also said it was more confident in Umicore's ability to sign take-or-pay contracts in batteries.

The New York broker adds that it expects the group's results to improve thanks to rising metal prices and a healthier balance sheet as 2026 approaches.

Goldman Sachs, which is raising its earnings forecasts for 2025, 2026, and 2027, is consequently upgrading its recommendation from "neutral" to "buy" with a 12-month price target raised from €8.4 to €16, representing upside potential of around 56%.


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