Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
🚨 NDVA surged 43%. This AI Chipmaker Could Be Next See Analysis
ArcelorMittal upgraded to buy at BoA as shares trade at deep value
Published Mar 23, 2023 08:48
© Reuters.
By Michael Elkins
Bank of America upgraded ArcelorMittal (AS:MT) (NYSE:MT) to a Buy rating (From Neutral) and raised their price target on the stock to €31 (from €30) (€1=$1.0872) following a recent share price decline. The decline means that shares now trade at deep value, which makes for an interesting entry point for the stock.
Analysts wrote in a note, “MT's valuation is relatively low compared to its history. We think this discount is an attractive entry point as MT has a low level of net debt relative to its own history and a capital allocation policy to direct 50% of FCF to shareholder returns (dividends & buybacks). We also think earnings expectations have troughed and are pending upgrade given the surprisingly resilient steel cycle into 2023.”
Other than valuation, Bank of America’s main reasons for their bullish view on the steel company include troughed earnings estimates and share buybacks. Since the end of 2020, MT has reduced the number of shares in issue by >20%.
Earnings forecasts and expectations have started to trend higher. Earnings forecasts tend to have a positive correlation with share price performance. Bank of America increase their forecasted Underlying EBITDA estimates for ArcelorMittal by 30%/13%/9% for FY23/24/25E respectively. Bank of America’s $8 billion 2023 EBITDA estimate is now above consensus ($7.1B), despite forecasting falling steel prices from current levels.
Shares of MT are up 2.43% in pre-market trading on Thursday.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.