Bank of America Securities analyst Patrick Mann reiterated a Buy rating on ArcelorMittal (0RP9 – Research Report) today and set a price target of €29.00.
Patrick Mann has given his Buy rating due to a combination of factors that highlight ArcelorMittal’s promising financial and strategic position. The company reported a first-quarter EBITDA that exceeded market expectations, indicating strong operational performance despite a challenging environment. Additionally, the significant increase in steel spreads in Europe is expected to support the company’s outlook for the second quarter, contributing to a positive financial trajectory.
Furthermore, ArcelorMittal’s strategic projects are projected to enhance mid-cycle EBITDA, supporting medium-term earnings growth. The company’s focus on strategic capital expenditures, alongside a disciplined approach to economic decarbonization, underscores its commitment to sustainable growth. The continuation of the share buyback program also reflects a robust capital return policy, enhancing shareholder value. These elements collectively justify the Buy rating, as they indicate a balanced approach to growth and capital returns at an attractive valuation.
In another report released today, Barclays also maintained a Buy rating on the stock with a €27.00 price target.