Why is Danieli & C Officine Meccaniche stock sliding today?

Danieli & C Officine Meccaniche shares fell 6.8% after Kepler Cheuvreux dropped the stock from its "Italian top picks" list ahead of the company’s September 25 fiscal-year results. A Milan-based trader said the move triggered profit-taking.

Kepler cut its full-year EBITDA forecast by 10% to €447 million ($519 million), saying it no longer expects the company to beat its own guidance, and cited delays and logistical complexities likely to have hurt second-quarter revenue and margins.

The brokerage kept its Buy rating but lowered its price target 4% to €80.

The selling has pushed the stock well below its opening price of €62.05, touching an intraday low of €58.6 before a partial recovery.

The company’s recently reported half-year net income reflected a sharp year-over-year contraction, a dynamic that has kept institutional sentiment cautious even as sell-side analysts — including those at Berenberg Bank and Kepler Capital — have maintained Buy ratings in prior months. No new analyst action or insider transaction was identified for today.

On the broader market front, global equity indices provided little directional support, with U.S. benchmarks trading essentially flat. The Italian industrial machinery sector, in which Danieli competes alongside peers in steel plant engineering, has faced ongoing headwinds from subdued global steel capital expenditure cycles and margin compression, adding a sector-wide dimension to the stock’s weakness.