MT - ArcelorMittal upgraded to Buy at BoA on compelling valuation

2023-03-23 12:56:11 ET

ArcelorMittal ( NYSE: MT ) +2.3% in Thursday's trading as Bank of America upgraded the stock to Buy from Neutral with a €31 price target, up from €30, saying shares now trade at deep value after plunging 18% for the two weeks starting March 3.

"We think this discount is an attractive entry point as MT has a low level of net debt relative to its own history and a capital allocation policy to direct 50% of FCF to shareholder returns," BofA analysts wrote, adding that earnings expectations have "troughed and are pending upgrade given the surprisingly resilient steel cycle into 2023."

BofA also noted ArcelorMittal ( MT ) has reduced the number of shares in issue by more than 20%.

Separately, ArcelorMittal ( MT ) said earlier it has halted activities at one of its blast furnaces at the Asturias steel plant in Spain after sustaining damage in a fire .

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