(CercleFinance.com) – The title is down nearly 1% while Deutsche Bank on Monday maintained its buy recommendation on ArcelorMittal, but lowered its price target on the title, reduced from 55 to 52 euros.
In a research note published for the publication of the fourth quarter results, scheduled for February 10, the intermediary said he expected a sequential decline in the steelmaker’s EBITDA.
Deutsche Bank said to forecast a basic result of 4.9 billion dollars, against 6.1 billion dollars in the third quarter, due to higher costs of coal and energy prices.
The analyst consequently reduced his EBITDA forecasts for 2022 and 2023 from 3% to 4%, which ultimately led him to revise his target on the stock downwards.
Despite the review, Deutsche Bank says it expects the recovery in demand, along with regulatory changes and rising inflation, to benefit the group’s profit margins for some time.
In addition, expecting a continuation of the generous redistribution policy offered to shareholders, the intermediary also highlights the valuation of the share, which shows an Enterprise Value / Ebitda ratio of 2.2x for 2021-2022.
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