Nomura Securities Maintains a 'Neutral' on Arcelor Mittal (MT); Standing Still Until More Focus Into 2013
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Price: $12.73 -2.6%
Rating Summary:
9 Buy, 9 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 17 | Down: 16 | New: 29
Rating Summary:
9 Buy, 9 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 17 | Down: 16 | New: 29
Trade MT Now!
Nomura Securities maintains a 'Neutral' on Arcelor Mittal (NYSE: MT) price target of EUR17.
Analyst, Neil Sampat, said, "We reduce our H1 EBITDA estimate by 9% to $4.7bn to reflect a very muted earnings recovery in Q1 EBITDA ($1.75bn). We remain of the view that the expansion of European steel margins above raw material costs that has taken place since the turn of the year is fundamentally unsustainable, given ample idle capacity. We expect European steel prices to fall or raw material costs to increase, or both, until the margin is normalized. As the spot margin contracts, this should temper expectations around MT’s steel earnings in H2. We believe 2013 earnings will be out of investors’ focus until mid-2012 and in the near term MT shares should trade on 6x 2012E EBITDA (as it currently does)."
For an analyst ratings summary and ratings history on Arcelor Mittal click here. For more ratings news on Arcelor Mittal click here.
Shares of Arcelor Mittal closed at $20.40 yesterday, with a 52 week range of $14.77-$37.69.
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Analyst, Neil Sampat, said, "We reduce our H1 EBITDA estimate by 9% to $4.7bn to reflect a very muted earnings recovery in Q1 EBITDA ($1.75bn). We remain of the view that the expansion of European steel margins above raw material costs that has taken place since the turn of the year is fundamentally unsustainable, given ample idle capacity. We expect European steel prices to fall or raw material costs to increase, or both, until the margin is normalized. As the spot margin contracts, this should temper expectations around MT’s steel earnings in H2. We believe 2013 earnings will be out of investors’ focus until mid-2012 and in the near term MT shares should trade on 6x 2012E EBITDA (as it currently does)."
For an analyst ratings summary and ratings history on Arcelor Mittal click here. For more ratings news on Arcelor Mittal click here.
Shares of Arcelor Mittal closed at $20.40 yesterday, with a 52 week range of $14.77-$37.69.
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