ArcelorMittal: Oddo BHF cuts TP
(CercleFinance.com) - Oddo BHF maintains its 'outperform' rating on ArcelorMittal shares, with a target price lowered from E34 to E32.
The analyst reports that expectations have been lowered for the Q2 and Q3, quarters due to various incidents in recent months, with particular reference to the strike at the Mexican steel mill which began on 24 May and which has no prospect of being resolved in the near future.
As a result, Oddo BHF has lowered its Q2 adjusted EBITDA expectations by 8% to $1.74bn, after already adjusting them by 6% on 20 June following a previous company contact.
Beyond this operational situation, the market context remains unpromising, mainly due to the weakness in China, adds the broker, who thus evokes expectations that have also been lowered in the medium term.
The mixed macro picture and uncertainty over the resolution of the social conflict in Mexico do not, however, suggest a rapid re-rerating, the analyst concludes.
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