In a report released yesterday, Reinhardt van der Walt from Bank of America Securities reiterated a Buy rating on ArcelorMittal, with a price target of €40.00.
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Reinhardt van der Walt has given his Buy rating due to a combination of factors including ArcelorMittal’s recent financial performance and positive future outlook. The company reported a slight beat in its third-quarter EBITDA, particularly in Europe, where the earnings were higher than consensus estimates. This performance, coupled with encouraging trade policy developments in the EU, suggests a favorable environment for ArcelorMittal to achieve its financial targets, including a positive free cash flow outlook for 2025 and beyond.
Furthermore, Reinhardt van der Walt anticipates that the implementation of new EU tariffs could significantly boost ArcelorMittal’s earnings in the coming years. The potential for increased industry volume growth and price uplift, along with strategic growth initiatives and mergers and acquisitions, supports a positive outlook for the company’s EBITDA growth. Additionally, upcoming updates on the Carbon Border Adjustment Mechanism (CBAM) by the European Commission could serve as a catalyst, further enhancing the company’s valuation and justifying the Buy rating.
In another report released today, Deutsche Bank also maintained a Buy rating on the stock with a €38.00 price target.
0RP9’s price has also changed moderately for the past six months – from EUR26.590 to EUR33.280, which is a 25.16% increase.