ArcelorMittal: stock rises on Deutsche Bank upgrade

(CercleFinance.com) - On Wednesday shares of the world leading steelmaker ArcelorMittal were up, boosted by an upgrade from Deutsche Bank, which is now a buyer.


At around 10:30 a.m., the steelmaker's shares were up over 1%, making it the second-biggest winner on the Amsterdam AEX, which was up by 0.2% at the same time.

Although it expects H2 to be "difficult", the broker believes that the risks surrounding the group's business are well priced in at current levels.

In its opinion, the risk/return profile is now more favourable, leading it to envisage "significant" upside potential for the stock.

Deutsche Bank also anticipates growth in several strategic sectors, despite the stock's low valuation.

The management team has taken advantage of this by buying back shares representing almost 37% of the capital since December 2020, it points out.

With cash flow yields (FCF) expected to reach between 10% and 20% in the middle of the cycle, there is every reason to believe that these acquisitions should continue, it concludes.

Deutsche Bank has therefore upgraded the stock from "hold" to "buy", while raising its target price from E27 to E28.


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