ArcelorMittal: Oddo raises target price
(CercleFinance.com) - Oddo BHF reiterates its "buy" rating on the ArcelorMittal stock, and raises its corresponding target price from from 16 euros to 20 euros, after increasing its 2020-22 EBITDA sequence for the steel group.
The broker therefore expects EBITDA of 3.9 billion dollars in 2020, followed by 6.7 billion dollars in 2021 and 7.6 billion dollars in 2022, based on improved forecasts for the steel margin and iron ore prices in 2021 and 2022.
The analyst adds that the group's target net debt of 7 billion dollars, which is supposed to trigger a return of cash to shareholders, will have been reached sooner than expected: he now expects net debt of 6.6 billion dollars by the end of 2020.
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