(News Bulletin 247) – Oddo BHF maintains its outperformance rating on ArcelorMittal shares, with a price target reduced from 37 to 35 euros.
While ArcelorMittal is due to publish its results for the 2nd quarter on July 27, Oddo BHF anticipates an EBITDA of $2.38 billion, in line with the Visible Alpha consensus ($2.4 billion).
‘On the other hand, cash generation should remain modest with an FCF expected at $297 million due to the rise in Capex and seasonal consumption of WCR before a strong improvement expected in the 2nd half,’ notes the analyst.
In this context, Oddo BHF indicates that it has left its 2023 estimates unchanged with an EBITDA forecast at $7.93 billion (vs. $7.91 billion) in line with the consensus.
However, ‘we have revised slightly down our expectations for 2024 (-4% to $8.40bn, 5% above consensus) and 2025 (-2% to $9.71bn, 15% above ) with the integration of a less favorable price scenario”, underlines the broker.
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