Salzgitter initiated with a Hold at Jefferies

Jefferies analyst Cole Hathorn initiated coverage of Salzgitter with a Hold rating and EUR 30 price target. The analyst initiated coverage of European Union steel, with Buy on ArcelorMittal given “appealing value recovery” and 50% upside to the firm’s price target. The weak 2024 macro and steel demand backdrop is well-known, capacity is being idled, and it’s already reflected in expectations and valuations, the analyst tells investors in a research note. The firm says steel spreads are bottoming, and with balance sheets better versus history, steel shares poised to benefit from first half of 2024 price hikes off the lows.