Austrian stocks tumble 5% as Iran conflict and oil prices shake the ATX index
Austrian stocks have faced a tough year, with the ATX index dropping around 5% since the Iran conflict erupted a month ago. The market has struggled with higher oil prices, inflation worries, and geopolitical tensions hitting energy-reliant sectors hard. Yet, analysts remain optimistic about certain companies, issuing fresh recommendations this week. The ATX has underperformed Germany's DAX over the past twelve months, showing sharper declines and greater volatility. Rising oil prices—driven by Hormuz Strait blockades and Iranian supply disruptions—have fuelled inflation fears. US military moves and political ultimatums have added pressure, particularly on Austria's energy-dependent economy.
Despite the broader downturn, two new 'buy' ratings emerged this week. Warburg Research upgraded construction firm Porr from 'hold' to 'buy' after strong Q4 2025 results. Erste Group, however, downgraded Porr from 'buy' to 'accumulate' but lifted its price target from €34.50 to €39.50. Warburg now forecasts Porr's earnings per share (EPS) at €3.16 for 2026, €3.54 for 2027, and €3.74 for 2028. Erste's projections are slightly higher, at €3.35 for 2026, €3.76 for 2027, and €4.06 for 2028.
Berenberg Bank also made bullish moves, raising its price target for Frequentis shares from €70.00 to €89.00. The bank expects the air traffic control specialist to see faster growth from renewal cycles and new projects. EPS forecasts for Frequentis stand at €2.63 in 2025, €2.50 in 2026, and €2.98 in 2027. Berenberg also adjusted its target for SBO, increasing it from €31.00 to €32.00. The ATX's struggles reflect broader economic pressures, from oil price spikes to geopolitical instability. Yet, targeted upgrades for Porr and Frequentis suggest confidence in specific sectors. Analysts' revised forecasts and price targets indicate potential resilience amid the market's wider challenges.
