Aperam: Oddo downgrades stock
(CercleFinance.com) - In a sector report, Oddo BHF has downgraded Aperam shares from "outperform" to "neutral", having cut its target price for them from 38 euros to 31 euros, which still gives the stainless steel, electrical and specialties manufacturer's stock upside potential of 17%.
Stainless steel producers have seen electricity prices skyrocket this summer, a particularly damaging situation, the analyst points out, noting that Aperam is the most affected and that it had to shut down its melt shop in Genk, Belgium, in August.
The broker has therefore reduced its 2023 and 2024 EBITDA estimates by 18% for Aperam, in order to take into account both a sharply rising energy bill and a worse outlook in Europe.
Copyright (c) 2022 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.