ArcelorMittal: Jefferies still a buyer, adjusts TP

(CercleFinance.com) - Jefferies reinstates its "buy" recommendation on ArcelorMittal shares, shaving a euro off its target price for them from 42 euros to 41 euros (current price about 25 euros, up 1.
5%) in a report on the European steel sector, about which it says it remains positive for 2022.

"With balance sheets the best in >10 years, strong steel margins and WC headwinds abating, we forecast a record year for FCF in 2022 (21% sector yield)," the broker says.

Jefferies points to an expected 4.8% increase in steel demand in Europe next year, bringing it back to pre-pandemic levels (2019), with the automotive industry catching up after chip shortages.



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