UPDATE: Deutsche Bank Upgrades ArcelorMittal on Positioning For a Multi-Year Recovery

In a report published Monday, Deutsche Bank analyst David S. Martin upgraded the rating on ArcelorMittal MT from Hold to Buy, and raised the price target from $13.50 to $19.00. In the report, Deutsche Bank noted, “ArcelorMittal has been facing a four year phase of consecutive earnings downgrades causing the shares to drop 55% during that period. While we remain skeptical on a removal of the global capacity overhang, management has worked aggressively on taking out costs which makes AM highly geared towards any improvement in fundamentals. As leading indicators hint a recovery, we believe earnings momentum starts to enter positive trajectory leading investors to revisit the under-owned stock. With a recapitalized B/S, significant earnings leverage and upgrades on a potentially strong H1 as catalyst, AM offers attractive risk/reward in a recovery scenario - Buy.” ArcelorMittal closed on Friday at $15.94.