ArcelorMittal: Oddo BHF cuts TP
(CercleFinance.com) - Oddo BHF maintains its 'outperform' rating on ArcelorMittal shares, with a target price lowered from E34 to E32.
The analyst reports that expectations have been lowered for the Q2 and Q3, quarters due to various incidents in recent months, with particular reference to the strike at the Mexican steel mill which began on 24 May and which has no prospect of being resolved in the near future.
As a result, Oddo BHF has lowered its Q2 adjusted EBITDA expectations by 8% to $1.74bn, after already adjusting them by 6% on 20 June following a previous company contact.
Beyond this operational situation, the market context remains unpromising, mainly due to the weakness in China, adds the broker, who thus evokes expectations that have also been lowered in the medium term.
The mixed macro picture and uncertainty over the resolution of the social conflict in Mexico do not, however, suggest a rapid re-rerating, the analyst concludes.
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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.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
The analyst reports that expectations have been lowered for the Q2 and Q3, quarters due to various incidents in recent months, with particular reference to the strike at the Mexican steel mill which began on 24 May and which has no prospect of being resolved in the near future.
As a result, Oddo BHF has lowered its Q2 adjusted EBITDA expectations by 8% to $1.74bn, after already adjusting them by 6% on 20 June following a previous company contact.
Beyond this operational situation, the market context remains unpromising, mainly due to the weakness in China, adds the broker, who thus evokes expectations that have also been lowered in the medium term.
The mixed macro picture and uncertainty over the resolution of the social conflict in Mexico do not, however, suggest a rapid re-rerating, the analyst concludes.
Copyright (c) 2024 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.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.