Scrap metal, Aperam’s gold standard | Photo credit: Shutterstock
This Friday, as part of our section dedicated to derivatives, we are interested in the producer of stainless steels Aperam.
The title, which had hit its historic high at 56.10 euros on January 20, lost 23% as of December 31. It is down another 9% since the start of the year.
Despite the risk of a drop in demand linked to the Russian-Ukrainian conflict, Aperam is reassuring: ” Scrap is our dominant raw material and this market is not impacted by the current geopolitical tension. Scrap availability is normal, our backlog (…) will be delivered as planned “. Less than 0.5?% of its sales are destined for Ukraine and Russia, but part of the ferronickel comes from Ukraine, so a supply plan from other sources has been put in place.
Aperam expects to further improve its gross operating surplus in the first quarter of 2022, compared to the record of the fourth quarter of 2021.
The fall in the stock offers, in our view, an opportunity to position itself via turbo calls. We recommend code product 48W2S. The knock-out barrier is just over 15% of the current stock level and the leverage is 5x.
Quotation range: 0.84 – 0.85 euro
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