Morgan Stanley analyst Ioannis Masvoulas maintained a Hold rating on ArcelorMittal today and set a price target of €32.20.
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Ioannis Masvoulas has given his Hold rating due to a combination of factors surrounding ArcelorMittal’s current operational challenges. The recent fire at the Fos-sur-Mer plant in southern France has led to a halt in operations, affecting one of the company’s significant production sites. This incident, coupled with the ongoing maintenance at another blast furnace, has temporarily reduced ArcelorMittal’s production capacity in a key market.
Furthermore, the timing of this disruption coincides with broader supply concerns in the steel industry, particularly following the announcement of the Steel Action Plan. The Fos-sur-Mer site, which contributes a notable portion to ArcelorMittal Europe’s annual output, plays a crucial role in the company’s overall production strategy. These factors contribute to a cautious outlook, justifying the Hold rating as the company navigates these operational hurdles.
According to TipRanks, Masvoulas is a 4-star analyst with an average return of 6.3% and a 61.00% success rate. Masvoulas covers the Basic Materials sector, focusing on stocks such as Lundin Mining, Antofagasta, and Aurubis.