Aperam: Oddo lowers TP

(CercleFinance.com) - Oddo BHF maintains its "neutral" rating on Aperam shares, while lowering its target price for them from E45 to E42, i.
e. still giving them upside potential of 22%, having adjusted its expectations for the the steelmaker over its entire forecast period.

The analyst says that the stock's unfavourable momentum is offset by strong fundamentals such as high cash generation and high returns to shareholders (expected return of 14% including anticipated share buybacks).

However, he considers that the stock's valuation remains challenging at 5x 2023 EBITDA, based on his expectations versus 3.9x for Acerinox and 3.7x for Outokumpu, two peers he still prefers, pointing to a more favourable geographic mix.


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