ArcelorMittal’s Strategic Growth and Expansion in the US Market: A Buy Recommendation

In a report released yesterday, Patrick Mann from Bank of America Securities reiterated a Buy rating on ArcelorMittal (0RP9 – Research Report), with a price target of €29.00.

Patrick Mann has given his Buy rating due to a combination of factors that highlight ArcelorMittal’s strategic positioning and growth potential. The acquisition of the remaining 50% equity in the Calvert JV from Nippon Steel enhances ArcelorMittal’s presence in the US market, which is seen as favorable due to its structure and growth prospects. The Calvert facility’s focus on high value-add products, particularly in the automotive sector, along with its expansion potential, provides a solid foundation for future profitability.
Additionally, ArcelorMittal’s commitment to decarbonization and capital returns, coupled with its attractive valuation, supports the Buy rating. The company’s disciplined approach to investments, such as the planned expansion of electrical steel production at the Calvert site, aligns with long-term growth strategies. These factors, combined with the expected profitability from the Calvert assets, reinforce the positive outlook for ArcelorMittal’s stock.

In another report released today, Deutsche Bank also maintained a Buy rating on the stock with a €30.00 price target.

0RP9’s price has also changed moderately for the past six months – from EUR22.570 to EUR26.145, which is a 15.84% increase.