
ArcelorMittal: Oddo BHF remains positive, but trims TP
(CercleFinance.com) - Oddo BHF reiterates its 'outperform' rating on ArcelorMittal shares, which remain its best pick in the sector, along with SSAB, although analysts have cut their target price for them from E32 to E30, in the wake of a slight reduction in its forecasts for the steelmaker.
While it believes that the group will find it difficult to regain investors' favour quickly, the broker points to currently low utilisation rates, especially in Europe, which could enable significant growth in profitability in the event of a rebound.
Even in the absence of a strong recovery, it should enjoy good growth prospects from 2025 onwards. In addition, the low valuation and prospects for share buybacks limit the risk of further downside, the analyst adds.
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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.
While it believes that the group will find it difficult to regain investors' favour quickly, the broker points to currently low utilisation rates, especially in Europe, which could enable significant growth in profitability in the event of a rebound.
Even in the absence of a strong recovery, it should enjoy good growth prospects from 2025 onwards. In addition, the low valuation and prospects for share buybacks limit the risk of further downside, the analyst adds.
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.