On Friday, Citi adjusted its price target for ArcelorMittal (NYSE:MT:NA) (NYSE: MT) shares, the multinational steel manufacturing corporation, to €38.00, a decrease from the previous €40.00. Despite this change, the firm continues to recommend a Buy rating for the company's stock.
The modification in price target comes as the analyst at Citi highlights five reasons for a tactical bullish stance on ArcelorMittal. Firstly, the company's shares are currently near the lower end of their post-pandemic trading range. Additionally, steel prices are observed to be troughing across major global markets, which historically signals a favorable time to invest in steel stocks.
The analyst also notes that seasonally, the company's shares tend to bottom out between July and September, with a tendency to rally as the year-end approaches. Moreover, the year 2025 is anticipated to be significant for earnings growth, which the market is expected to start factoring in within the next 6 to 18 months, based on historical trends in the mining sector.
Lastly, the ongoing share buyback program, which still has 3% of the outstanding shares to be repurchased, could potentially be expedited given the current lower share prices. This buyback initiative is seen as a positive move that could benefit the stock's value in the near future.
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