ArcelorMittal: Barclays downgrades to 'underweight'.
(CercleFinance.com) - Barclays has downgraded its rating on ArcelorMittal shares to "underweight," from "equal weight," cutting its target price from 7 euros to 5.
5 euros, as "momentum is fading" around the world's largest steel producer.
As the World Steel Association expects US steel demand in 2018 to be 10% below 2014 level, positive arguments in favour of structural improvements are being dismissed, the brokerage firm said.
With an industry operating at overcapacity and high steel/raw material price volatility, in addition to downside risks to steel prices, Barclays has preferred to downgrade its rating on the stock.
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