ArcelorMittal: Oddo BHF cuts target price
(CercleFinance.com) - Oddo BHF maintains its "outperform" rating on ArcelorMittal shares, while trimming its target price for them from E31 to E30.
With ArcelorMittal due to publish its Q3 results on 9 November, Oddo BHF expects the EBITDA of $1.80bn to be 5% below the consensus and down 27% sequentially, against the backdrop of a general economic slowdown. This decline is mainly due to lower steel prices, the analyst highlights.
Q4 already suggests an unfavourable year, with a probable margin squeeze due to weak steel prices, mainly in North America, and rising raw materials costs, the broker adds.
Against this backdrop, the deteriorating economic situation has already prompted ArcelorMittal to mothball one of its two blast furnaces at Fos-sur-Mer (approx. 5% of European capacity) - similar measures could follow at other sites.
Copyright (c) 2023 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.
With ArcelorMittal due to publish its Q3 results on 9 November, Oddo BHF expects the EBITDA of $1.80bn to be 5% below the consensus and down 27% sequentially, against the backdrop of a general economic slowdown. This decline is mainly due to lower steel prices, the analyst highlights.
Q4 already suggests an unfavourable year, with a probable margin squeeze due to weak steel prices, mainly in North America, and rising raw materials costs, the broker adds.
Against this backdrop, the deteriorating economic situation has already prompted ArcelorMittal to mothball one of its two blast furnaces at Fos-sur-Mer (approx. 5% of European capacity) - similar measures could follow at other sites.
Copyright (c) 2023 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.