Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

ArcelorMittal falls after BofA downgrades European steel sector

Published 12/14/2022, 11:02 PM
© Reuters.
FCHI
-
AEX
-
MT
-
MT
-

By Geoffrey Smith 

Investing.com -- ArcelorMittal (AS:MT) (NYSE:MT) stock fell over 4% in European trading on Wednesday, after analysts at Bank of America cut their forecasts for a handful of European steelmaking stocks.

The analysts cut their recommendation for the world's largest steelmaker to 'neutral' from 'buy' on valuation grounds, after a sharp relief rally in recent weeks as the threat of energy rationing this winter across Europe has receded.

The new price target of €28 a share left only around 10% upside from Tuesday's close.

The analysts said an 'underperform' rating wasn't appropriate, given that the "valuation is not demanding and we consider the possibility for the company to announce more share buybacks which could maintain the share price around current levels even in the face of earnings downgrades."

The company has a history of relatively shareholder-friendly policies, they added.

By 09:45 ET (14:45 GMT), ArcelorMittal stock was down 4.4% on Euronext, making it the worst performer in both the CAC 40 and AEX indices.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.