ArcelorMittal: Oddo raises target price

(CercleFinance.com) - Oddo maintains its "outperform" rating on ArcelorMittal shares, nudging up its target price for them from E35 to E36.


ArcelorMittal was optimistic for 2023 during the presentation of its 2022 results, expecting an increase in apparent world steel consumption (excluding China) of 2% to 3%, with the company intending to outperform the market, with around a 5% increase in its own volumes.

Even though uncertainties remain regarding the global economy with the bankruptcy of several banks in the US, Oddo expects EBITDA to reach $1.56bn in Q1 (+24%), followed by $2.1bn in Q2 (+34%), thanks to dynamic volumes and rising prices, before normalising in Q3 (-9%) and Q4
(-2%), with the decline in prices.

As a result, analysts have increased their 2023 forecast by 15% to $7.58bn, which is 7% above the consensus. At present, their forecast for 2025 is little changed (+2%) in the face of uncertainties, the broker concludes.


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