ArcelorMittal: Deutsche Bank raises its recommendation to 'buy

(CercleFinance.com) - Deutsche Bank announced on Wednesday that it had raised its recommendation on ArcelorMittal shares from 'hold' to 'buy', while raising its target price from 27 to 28 euros.


Although it expects the second half of the year to be "difficult", the intermediary believes that the risks surrounding the group's business are well integrated into prices at current levels.

From its point of view, the risk/return profile is now more favorable, leading it to envisage a "significant" upward potential for the stock.

Deutsche Bank also anticipates growth in several strategic sectors, despite the stock's low valuation.

"The management team has taken advantage of this by buying back shares representing almost 37% of the capital since December 2020", he points out.

With cash flow yields (FCF) expected to be between 10% and 20% mid-cycle, everything suggests that these acquisitions should continue", concludes the analyst.

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