MT - Anglo American upgraded ArcelorMittal cut at Barclays

2023-04-03 11:56:07 ET

Barclays upgraded Anglo American ( OTCQX:AAUKF ) ( OTCQX:NGLOY ) on Monday to Overweight from Equal Weight with a €32.50 price target while downgrading ArcelorMittal ( NYSE: MT ) to Equal Weight from Overweight with a €31 target, as the bank turns positive on iron ore and negative on steelmaking.

Seeing Anglo American ( OTCQX:AAUKF ) ( OTCQX:NGLOY ) as the "high beta play on China reopening," the Barclays team also cited the stock's attractive valuation with the widest EV/EBITDA and sum-of-the-parts discounts in a year and a half, and quality growth without a "copper premium" being attached to the company's copper exposure.

On the other hand, ArcelorMittal ( MT ) was cut as Barclays revised its FY 2023 China steel net export forecast to 58M tons from 25M, or 6.5% of the ex-China market, which likely will represent a major risk to European Union steel price momentum.

ArcelorMittal ( MT ) is a global steel leader currently available to investors at a good price, Wolf Report writes in an analysis published recently on Seeking Alpha .

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