(News Bulletin 247) – Bank of America announced Thursday that it has raised its recommendation on ArcelorMittal from ‘neutral’ to ‘buy’ with a price target raised from 30 to 31 euros.
In a research note, the American investment bank evokes the “attractive” valuation of the steel giant following the recent correction which hit the title.
BofA points out that the level of activity in the steel sector continues to surprise favorably, which could lead to an upward revision of the market forecast.
If the steel industry could turn downwards during the second half of the year, bringing in its wake a fall in prices, the New York firm underlines that the market conditions are proving, today, much less worse than what could be feared at the end of 2022.
In terms of valuation, the ArcelorMittal share is currently trading at 0.45x its book value, against a long-term average of 0.6x, while its Enterprise Value / EBITDA multiple is around 2.4x compared with a historical average of 4.8x, concludes BofA.
Copyright (c) 2023 News Bulletin 247. All rights reserved.
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
