ArcelorMittal (MT) - Bear of the Day
22 Maggio 2012 - 2:00AM
Zacks
We are maintaining our Underperform recommendation on
ArcelorMittal (MT) following our assessment of its
first-quarter 2012 results. Earnings missed the Zacks Consensus
Estimate while revenues beat the forecast.
The company's net debt climbed by roughly $1.1 billion in the
quarter. ArcelorMittal also reduced its growth outlook for steel
and announced a few divestments including the sale of its steel
foundation distribution business to Nucor Corporation. These
divestments are a part of the company's strategy to dispose its
non-core assets, a move which it expects to continue in the second
quarter.
ArcelorMittal remains affected by the challenging economic
conditions in Europe. It is also exposed to volatility in steel
pricing and tough competition. Our long-term Underperform
recommendation on the stock indicates that it will perform below
the broader market. Our price target of $13 is based on 6.5x our
fiscal 2012 earnings estimate.
ARCELOR MITTAL (MT): Free Stock Analysis Report
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