voda schreef op 22 oktober 2015 17:28:
Deutsche Bank cuts ArcelorMittal target by 26%
Published on Thu, 22 Oct 2015 85 times viewed
Deutsche Bank has downgraded its price call on ArcelorMittal as the European steel industry buckles in the face of low international prices and complaints about the dumping of cheap metal onto the market by China. They have cut their target price on the steelmaker to EUR 7.00 from EUR 9.50. They do however retain their overall Hold rating on the stock, and think that the risk/reward balance is fair.
German bank’s analysts write on Wednesday “As imports and negative sentiment weigh on steel margins in the North American Free Trade Area and Europe, and Brazil is in recession, ArcelorMittal remains challenged in all key markets.”
ArcelorMittal is due to unveil its third-quarter results on November 6. Deutsche expects earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $1.43 billion, which wouldn’t be far off the second quarter’s $1.4 billion, largely driven by a modest recovery in NAFTA operations.
However, the steel industry remains under severe pressure in Europe. The Italian and French governments have intervened directly to save jobs in the sector. The British government is so far resisting calls to do the same despite job cuts and facility closures looming in Scotland and the north of England.
Source : news.markets/shares