ArcelorMittal: UBS downgrades stock
(CercleFinance.com) - UBS announced on Wednesday that it has downgraded its rating on ArcelorMittal shares from "neutral" to "sell" after the stock's recent rebound.
In a note devoted to European steelmakers, the broker advises investors not to continue at all costs the "rally" that carries the sector since the end of 2022, against the backdrop of the reopening of China and the moderation of inflationary pressures.
In the absence of a favourable price momentum, analysts see little to justify buying into the sector, which is devoting heavy investment to decarbonising its operations and has little potential for margin appreciation over the long term, UBS adds.
The broker says that ArcelorMital's stock price already includes the continuation of a favourable trajectory, an assumption that it considers "unlikely" at this stage.
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