In a report released today, Reinhardt van der Walt from Bank of America Securities reiterated a Buy rating on ArcelorMittal, with a price target of €36.00.
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Reinhardt van der Walt has given his Buy rating due to a combination of factors that positively influence ArcelorMittal’s market position. The European Commission’s proposal to cut steel import quotas and increase tariffs on out-of-quota imports is expected to boost domestic demand for steel by 5-10% and raise prices by EUR30-50 per ton. This regulatory change aligns with industry expectations and is likely to enhance ArcelorMittal’s earnings from mid-2026, prompting an upward revision of the price objective to EUR36.
Additionally, the anticipated increase in domestic demand could elevate operating rates from approximately 65% to the mid-70s, improving fixed cost absorption. This scenario suggests a favorable shift in the cost curve, potentially requiring higher-cost domestic production to meet new demand levels. The overall positive price risk and potential for increased earnings growth support the Buy rating, reflecting a strategic opportunity for ArcelorMittal in the evolving European steel market.
In another report released today, Citi also maintained a Buy rating on the stock with a €45.00 price target.