ArcelorMittal’s stock surges after CFRA upgrades to ‘Buy’ with €39 target
ArcelorMittal (MT) shares have received a boost with CFRA upgrading its rating to 'Buy' from 'Hold', following a price target increase to €39 from €29. The analyst firm's optimism is driven by a more positive outlook for the steelmaker's fiscal year 2026.
CFRA's new price target reflects a €1.7 billion total EBITDA uplift projected by ArcelorMittal over 2025-27, fueled by strategic growth projects and recent mergers and acquisitions. The analyst, Wan Nurhayati, sees an improving 2026 outlook, shifting the risk-reward profile despite macroeconomic uncertainty, tariffs, and potential regulatory delays.
ArcelorMittal anticipates higher capacity utilization if the European Commission's proposed tariff trade tool takes effect. However, operational issues in Mexico continue to impact earnings, but the company is actively addressing these challenges and expects resolution in 2026.
ArcelorMittal shares climbed 0.9% on Tuesday following CFRA's upgrade. The steelmaker's future prospects appear brighter, with a projected EBITDA uplift and potential capacity utilization boost. Despite ongoing operational issues in Mexico, the company's strategic growth initiatives and M&A activities are expected to drive positive results.
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