Thyssenkrupp's steel business is a source of potential, given improving policy support and restructuring progress, Bank of America analysts say in a research note. If EU trade rules push European steel prices higher, the German conglomerate benefits more than most competitors due to its higher cost structure and earnings that react more strongly to price changes, the analysts say. In the near term, steel earnings are capable of surprising positively, they say. Nevertheless, significant long-term challenges remain, including capital expenditure on decarbonization and pension liabilities, they say. Overall, the analysts see continued restructuring progress as supportive of further upside to the stock's performance. Shares trade 1.4% higher at 10.395 euros. ([email protected])