ArcelorMittal: Oddo still a buyer, but cuts target price
(CercleFinance.com) - On Monday morning an Oddo BHF analyst confirms his "buy" recommendation on the ArcelorMittal share, while shaving one euro off the target price of 12 euros to 11 euros, after lower Q1 EBITDA of Q1, pending a (very) complicated Q2.
However, the broker maintains its buy rating on the share, noting healthy fundamentals, the settlement of the Ilva issue and debt reductions.
It say that the impact of the lockdown did not materialise until late on in Q1 (mid-March) - adding that the full backlash of cuts in production and deliveries will be felt in Q2 2020 (Q1 2020 deliveries are expected to fall by 10% relative to Q1 2019). The broker expects EBITDA of 298 million dollars in Q2 2020.
However, Oddo BHF's new target price still suggests upside potential of +40%.
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