ArcelorMittal: Barclays downgrades to 'underweight'.

(CercleFinance.com) - Barclays has downgraded its rating on ArcelorMittal shares to "underweight," from "equal weight," cutting its target price from 7 euros to 5.
5 euros, as "momentum is fading" around the world's largest steel producer.

As the World Steel Association expects US steel demand in 2018 to be 10% below 2014 level, positive arguments in favour of structural improvements are being dismissed, the brokerage firm said.

With an industry operating at overcapacity and high steel/raw material price volatility, in addition to downside risks to steel prices, Barclays has preferred to downgrade its rating on the stock.

Copyright (c) 2017 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.