Market Overview

UPDATE: Societe Generale Upgrades ArcelorMittal to Buy; Negative Newsflow Ending

Share:
Related MT
Mid-Morning Market Update: Markets Open Higher; AutoZone Profit Tops Estimates
Benzinga's Top Upgrades
After Hours Gainers / Losers (Seeking Alpha)

Societe Generale raised its rating on ArcelorMittal (NYSE: MT) from Hold to Buy on expectations that negative catalysts are coming to and end and a relative valuation that appears favorable.

Societe Generale noted, "We believe that the risk of incremental bad news is declining fast after Moody's decision to downgrade AM's rating to junk (vs investment grade). ... We also think that this latest downgrade may relieve some pressure on AM's management (i.e. more time to execute its asset disposal plans and greater potential to sell at a premium to book value), while some core assets could be removed from the disposal list. Last but not least, we note that AM's valuation is currently at an all-time low (0.4x book value), while the share should benefit from a sequential improvement in steel fundamentals vs Q4's very low levels."

ArcelorMittal closed at $15.81 on Tuesday.

Latest Ratings for MT

DateFirmActionFromTo
Aug 2016JP MorganUpgradesUnderweightNeutral
Jun 2016CitigroupUpgradesNeutralBuy
Apr 2016JefferiesUpgradesHoldBuy

View More Analyst Ratings for MT
View the Latest Analyst Ratings

Posted-In: Societe GeneraleAnalyst Color Upgrades Pre-Market Outlook Analyst Ratings

 

Related Articles (MT)

View Comments and Join the Discussion!