Dahlman Maintains Its Hold Rating On MT

Dahlman Rose has published a research report on ArcelorMittal MT following 3Q results that were roughly in-line with estimates, causing Dahlman to lower 2010-11 estimates and maintain its Hold rating. In the report, Dahlman Rose writes "Based on our softer near-term market outlook, we are lowering our 2010 and 2011 EBITDA estimates to $9.1 billion ($1.80 EPS) and $11.0 billion ($2.45 EPS), respectively. This compares to our prior EBITDA estimates of $9.8 billion ($2.05 EPS) for 2010 and $12.4 billion ($2.90 EPS) for 2011. We are initiating a 4Q10 EBITDA estimate of $1.9 billion ($0.24 EPS). We believe that a softer near-term market outlook is already priced in to MT shares. Nevertheless, we remain concerned about the company's near-term exposure to increases in raw material prices and decreasing global steel prices. Accordingly, we maintain our Hold rating on the shares." Dahlman Rose currently has a 52-week valuation range on ArcelorMittal between $49-$26. ArcelorMittal closed yesterday at $32.93.