X
<

How Wall Street Sees Steel Stocks ahead of 4Q17

PART:
1 2 3 4 5 6 7 8
Part 6
How Wall Street Sees Steel Stocks ahead of 4Q17 PART 6 OF 8

Wall Street Views: Can ArcelorMittal Continue Its Good Run?

Wall Street views

ArcelorMittal (MT) has gained 25.8% in 2017 based on September 12 closing prices. Notably, while ArcelorMittal is trading with decent year-to-date (or YTD) gains, US steelmakers including U.S. Steel (X) and AK Steel (AKS) are trading with YTD losses. To be fair, MT isn’t exactly comparable to X and AKS. ArcelorMittal gets only about a quarter of its revenues through NAFTA (the North American Free Trade Agreement) and is, therefore, less dependent on US markets than US-based steelmakers (CLF). In this article, we’ll see how analysts are rating ArcelorMittal after a strong 2017.

Wall Street Views: Can ArcelorMittal Continue Its Good Run?

Interested in X? Don't miss the next report.

Receive e-mail alerts for new research on X

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

Analysts’ recommendations

According to the data compiled by Thomson Reuters, ArcelorMittal has received a “strong buy” rating from five analysts while 12 analysts rate the stock a “buy” or some equivalent.  Two analysts have a “sell” rating on ArcelorMittal while the remaining four analysts rate the stock a “hold.” ArcelorMittal carries a mean consensus price target of 27.69 euros (~$33.17), which represents a 20.6% upside over its September 12 closing prices.

Overall, analysts seem bullish about ArcelorMittal. Although there has been no notable analyst action recently, some analysts had raised the stock’s target price after its 2Q17 earnings release. ArcelorMittal’s 2Q7 earnings were better than expected. The company also raised its 2017 global steel demand forecast, citing strong growth in Chinese steel consumption.

Notably, along with steel prices, ArcelorMittal is also impacted by movement in iron ore prices due to its vast iron ore operations. Iron ore prices have come off their 2017 highs despite higher Chinese imports.

In the next part of this series, we’ll see how analysts are rating Nucor (NUE).

X

Please select a profession that best describes you: