In a market devoid of catalysts, and it was not the monetary status quo of the European Central Bank that upset the situation, ArcelorMittal stood out once again yesterday on the Paris and Amsterdam stock exchanges.
The world number one in steel, with annual revenues exceeding $ 67 billion, thus took up 4% during the session, returning to the passage with 27 euros per title.
While the value has increased by 35% since the start of the year, the steel giant continues to ride the inflation of basic resources, and particularly iron ore (necessary for steel production) which is processed above $ 210 per tonne (up from $ 40 five years ago), approaching all-time highs hit in May.
As a backdrop, the recovery of the global economy, especially in China, the world’s largest consumer of steel and minerals, which has caused a strain on supply, while supply chains have again and again struggling to keep up.
Positive analysts on the record
All profit for mining companies and therefore the world number one in the sector. ArcelorMittal can also count on the goodwill of analysts, many of whom have positively revised their recommendation on the file.
For example, Deutsche Bank raised its share price target to 32 euros (20% potential), citing a return of operating margins to new heights.
The first German private bank is more widely among the 20 brokers who advise to buy, with a consensus price target at twelve months of 32.79 euros. Note that none of the followers recommends selling the action, and that three should be kept on file * *.
As often, we will add that speculation is not unrelated to the soaring commodity prices. Recently, China has intervened to threaten price control, targeting stock marketers who took positions in the hope of selling more expensive eventually.
Beyond this interventionism, it remains to be seen whether steel prices will be able to remain at such levels for the long term, bearing in mind that supply should pick up and the effects of the pandemic on imports should subside.
Net profit of 2.29 billion in the first quarter
On the operational performance side, the group led by Lakshmi Mittal said it was confident last May on the publication of results covering the first quarter, materialized by a net profit of $ 2.29 billion.
ArcelorMittal expects growth in global steel consumption to fall in the upper (or even above) the 4.5% to 5.5% range announced at the start of the year.
Note that over the first three months of the year, the turnover of the steelmaker reached $ 16.1 billion, against $ 14.8 billion a year earlier.
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