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Investing.com - Jefferies downgraded Aperam SA (AS:APAM) from Buy to Hold on Thursday, while lowering its price target to EUR30.00 from EUR33.50.
The downgrade comes as Jefferies sees limited near-term upside potential for the stainless steel producer in the absence of earnings momentum. The stock currently trades at 5.8x EV/EBITDA, compared to its five-year average of 5.1x.
Jefferies highlighted Aperam’s weaker-than-expected performance in European stainless markets, with Q2 and Q3 EBITDA projected to be close to breakeven. The company also has limited exposure to recent U.S. stainless price increases that have benefited competitors.
Despite the downgrade, Jefferies acknowledged Aperam’s diversified operations and attractive dividend yield of approximately 8% (EUR2 per share) as positive factors.
Aperam SA is also traded over-the-counter in the U.S. under the ticker (OTC:APEMY).
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