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Deutsche Bank cited ArcelorMittal’s fourth-quarter performance as rebasing its trough cycle to a higher level.
Shares of ArcelorMittal (MT) edged nearly 0.5% higher on Friday morning as Deutsche Bank analysts hiked their price target on the steelmaker after its fourth-quarter earnings.
Deutsche Bank hiked price target for the ArcelorMittal stock to $33 from $31, implying an upside of nearly 18% from current levels. The firm maintained a ‘Buy’ rating on the stock, according to The Fly.
ArcelorMittal’s fourth-quarter earnings per share (EPS) came in at $0.52, ahead of analyst expectations of $0.49. However, its revenue of $14.71 billion fell short of the expected $15.03 billion.
That said, Deutsche Bank cited ArcelorMittal’s fourth-quarter performance as rebasing its trough cycle to a higher level.
Its steel shipments rose to 13.5 million metric tons from 13.3 million metric tons during the same period last year. Iron ore shipments rose to 7.6 million metric tons from 6.1 million metric tons a year ago.
Sounding an optimistic note for the coming quarters, ArcelorMittal posted a bullish forecast for 2025. It expects global steel demand, excluding China, to rise between 2.5% and 3.5% in 2025.
The company also said it would open a new steel plant in Calvert, Alabama, at an estimated cost of $900 million. It expects to begin production in the second half of 2027, and at full capacity, the plant is estimated to contribute $200 million to its earnings before interest, tax, depreciation, and amortization (EBITDA).
Retail sentiment on Stocktwits around the ArcelorMittal stock remained in the ‘extremely bearish’ (0/100) territory, its lowest over the past year.
ArcelorMittal’s share price has surged over 32% in the past six months, while its one-year returns are less impressive at 3.6%.
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