Goldman Sachs analyst Matt Greene initiated coverage of ArcelorMittal with a Neutral rating and $29.60 price target. The company continues to optimize its asset portfolio, divesting low-yield assets and investing into high-growth regions, the analyst tells investors in a research note. However, this comes at a cost, with ArcelorMittal’s capex likely remaining elevated in coming over the next few years, pressuring free cash flow, says Goldman. The firm also sees prolonged pricing pressure stemming from low-cost imports and a sluggish recovery in real industrial demand in Europe weighing on the company’s operating outlook.
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