Why We’re Raising Our Price Estimate For ArcelorMittal To $9
ArcelorMittal has witnessed a revival in fortunes in recent months as a result of the improved demand outlook for steel, particularly in the U.S. This has resulted in a rally in the company’s stock price over the past few weeks.
ArcelorMittal Stock Price, Source: Google Finance
The U.S. government’s plans for a $1 trillion overhaul of domestic infrastructure is expected to provide a boost to the long term demand for steel in the U.S. [1] ArcelorMittal’s NAFTA business segment is expected to benefit from the improvement in demand conditions. In addition, the company’s business prospects have been boosted by regulatory action taken by trade authorities in both the U.S. and Europe. [2] The imposition of anti-dumping duties on steel imports from a number of countries engaging in unfair trade practices is expected to create a more level playing field for domestic steel producers in these geographies going forward. This should enable steel companies such as ArcelorMittal to benefit from improving demand conditions in these markets. As a result of the improved business conditions, we have revised our forecasts in our model for ArcelorMittal, including shipments, pricing, and margin estimates. This has translated into our new $9 price estimate for the company’s stock, which is a reflection of the company’s improved business prospects.
See our complete analysis for ArcelorMittal
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