Fannie Mae, Freddie Mac shares tumble after conservatorship comments
Investing.com - Deutsche Bank (ETR:DBKGn) has raised its price target on ArcelorMittal (NYSE:MT) to EUR31.00 from EUR30.00 while maintaining a Buy rating on the steel giant’s stock. The company, which has seen its stock surge over 50% in the past six months, currently trades at an attractive P/E ratio of 21.2x.
The bank expects ArcelorMittal to report sequential improvement in its Q2 results, driven by better spreads in Europe despite tariff headwinds from the United States.
Deutsche Bank has factored in an extended impact from the S232 duties in 2025 and remains below consensus on H2 estimates, projecting 7% lower 2025 EBITDA than the broader market expectation.
The acquisition of the residual Calvert stake has been incorporated into Deutsche Bank’s analysis, which contributed to the price target increase, though the bank notes this acquisition adjusts its 2025-27 EBITDA estimates by -1-4%.
European steel spreads have continued to soften, and Deutsche Bank sees further risk to spot prices in the near term, which may remain a headwind for ArcelorMittal shares, while noting a Canada trade deal could serve as a possible positive catalyst.
In other recent news, ArcelorMittal has been in the spotlight with several noteworthy developments. S&P Global Ratings upgraded ArcelorMittal’s credit rating to ’BBB/A-2’ from ’BBB-/A-3’, citing improved business performance and strategic growth projects. The company projects its EBITDA to rise to about $8.0 billion-$8.2 billion by 2025, driven by joint ventures and strategic investments. Goldman Sachs also upgraded ArcelorMittal’s stock rating from Neutral to Buy, with a new price target of EUR 29.00. The upgrade reflects expectations of declining raw material costs and potential political support for steel prices, which could enhance the company’s margins.
Additionally, BofA Securities maintained its Buy rating for ArcelorMittal, with a price target of $31.90. The firm highlighted the company’s new share buyback program, which is part of its capital return policy. ArcelorMittal plans to repurchase up to 10 million shares in the first tranche of this program. The company continues to focus on strategic projects, including a capacity expansion in India and investments in decarbonization. These efforts are expected to contribute approximately $1.9 billion to EBITDA by 2027.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.