(News Bulletin 247) – Deutsche Bank on Monday reduced its price target on ArcelorMittal, which it reduced from 35 to 34 euros while declaring that it expected solid results from the group in the second quarter.
The research department, which displays a buy recommendation on the stock, says it anticipates a sequential improvement in the steelmaker’s performance, under the effect of the recovery of the ‘spreads’ in Europe and the United States and the consolidation of CSP .
In his note, the analyst also recalls that the steel giant has reduced its capital by around 30% over the past two and a half years following the cancellation of repurchased shares, a phenomenon which implies that its current valuation stands at the same level as in 2020 despite the improvement in the quality of its assets and its accounts, which leads it to consider the stock as ‘attractive’.
DB stresses, however, that demand should weaken in the second half of the year on its main Western markets, making it necessary to rebound in activity in China before being able to envisage a rebound in the stock market.
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