tiprankstipranks
Ratings

ArcelorMittal’s Strong Q4 Performance and Strategic Expansion Justify Buy Rating

ArcelorMittal’s Strong Q4 Performance and Strategic Expansion Justify Buy Rating

Analyst Patrick Mann of Bank of America Securities reiterated a Buy rating on ArcelorMittal (0RP9Research Report), boosting the price target to €30.00.

Discover the Best Stocks and Maximize Your Portfolio:

Patrick Mann has given his Buy rating due to a combination of factors highlighted in ArcelorMittal’s recent performance and strategic initiatives. The company reported a notable earnings beat for the fourth quarter of 2024, with EBITDA surpassing consensus expectations by approximately 8%. This strong financial performance, coupled with a significant reduction in net debt, underscores the company’s financial robustness.
Furthermore, ArcelorMittal’s strategic projects, such as the expansion of its Liberia Iron Ore operations and the approval of a new electrical steel facility in the US, are projected to substantially boost future EBITDA. The company also maintains a promising outlook for global steel demand, excluding China, and expects to continue generating positive free cash flow in 2025. These factors, combined with a focus on growth and capital returns at an attractive valuation, reinforce Mann’s Buy rating for the stock.

In another report released today, Citi also maintained a Buy rating on the stock with a €40.00 price target.

Based on the recent corporate insider activity of 6 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of 0RP9 in relation to earlier this year.

1