ArcelorMittal: Oddo raises its target price
(CercleFinance.com) - Yesterday, ArcelorMittal announced the sale of its ArcelorMittal USA division to Cleveland Cliffs.
Oddo says that it has lowered its 2021e EBITDA expectation to 5.1 billion dollars (from 5.7 billion dollars) to take into account the deconsolidation of AM USA (550 million dollars on average in 2018-2019). However, analysts still expect a 2020 EBITDA of 3.2 billion dollars (-38% from 5.2 billion dollars in 2019).
It says that AM will communicate its method of returning cash to shareholders when it publishes its FY results (probably based on FCF which is more stable than EPS).
Oddo confirms its buy rating on the share, having raised its target price to 16 euros (up from 14 euros).
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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.
Oddo says that it has lowered its 2021e EBITDA expectation to 5.1 billion dollars (from 5.7 billion dollars) to take into account the deconsolidation of AM USA (550 million dollars on average in 2018-2019). However, analysts still expect a 2020 EBITDA of 3.2 billion dollars (-38% from 5.2 billion dollars in 2019).
It says that AM will communicate its method of returning cash to shareholders when it publishes its FY results (probably based on FCF which is more stable than EPS).
Oddo confirms its buy rating on the share, having raised its target price to 16 euros (up from 14 euros).
Copyright (c) 2020 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.