(CercleFinance.com) – Eramet jumped more than 13% in Paris, driven by a favorable analysis by AlphaValue which raised the recommendation on the stock, going from ‘reduce’ to ‘accumulate’, after a 2021 financial year deemed ‘formidable’ and given the ‘healthy’ growth prospects displayed by the minerals specialist.
In its research note, the Parisian firm indicates that it has significantly raised its earnings forecasts for 2022 given the high level of nickel prices which are benefiting from the strength of demand for stainless steel and the energy transition.
“Overall, it seems that all the planets are aligned for Eramet to generate very good results in 2022,” he underlines.
Although it invokes relatively low visibility due to the cyclical nature of the mining group’s activities, AlphaValue believes that its diversification into areas such as lithium or cobalt will enable it to improve its risk profile, while benefiting from limited exposure (10% of production) to Russian nickel.
Its target price remains 142 euros.
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