Eramet: Oddo BHF cuts TP

(CercleFinance.com) - Oddo BHF confirms its 'outperform' rating on Eramet shares, although has cut its TP for them from E126 to E109, after a significant reduction in production targets for its manganese ore operations in Gabon and its nickel operations at Weda Bay.


This decision reflects a pronounced imbalance between sluggish demand from the Chinese steel sector and oversupply following the explosion in prices over the summer, the analyst says, who has reduced his expectations for adjusted EBITDA 2024.

Despite the current air pocket, we remain positive about the group, which has assets that are all well positioned on the cost curve, and good prospects for production expansion in the short and medium term, he nevertheless judges.


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