ArcelorMittal: JPMorgan downgrades stock

(CercleFinance.com) - On Wednesday JPMorgan downgraded ArcelorMittal shares from "overweight" to "neutral", having slashed its corresponding target price from 48 euros to 32.
5 euros.

In a study of European steelmakers, the broker acknowledges that ArcelorMittal has done a "remarkable" job in reducing its debt and redistributing capital to its shareholders, but believes that the current economic uncertainty justifies caution.

JPMorgan also cites high inventory levels in Europe, unfavourable seasonality in Q3 and concerns about developments in certain markets, such as the automotive sector.

The share is indeed rusty today - down 8.5% this afternoon.


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