LIMIT BUY @ 24.80 EUR
TP @ 30.50 EUR (22.98%)
SL @ 23.00 EUR (-7.26%)
Technical Analysis
This stock has formed a Continuation Wedge pattern (Bullish), providing a target price for the intermediate-term in the range of 30.50 to 32.00, the Momentum oscillator has crossed above 0, thereby signaling a new accelerating uptrend. The stop loss was placed just below the invalidation point of this figure, which coincides with the annual low and two dynamic supports on the weekly and monthly (EMA 200 and EMA 50).
Fundamental Analysis
Based on 16 institutional analysts 12 gave a “Strong Buy” rating while 4 left the position on “Hold”. ArcelorMittal holds a price-to-earnings ratio of 3.64, a figure greater than 9% of its sector peers. The company’s price-to-free cash flow ratio is 4.43, greater than 14% of its sector peers. Moreover, the price is trading well below its intrinsic value where we find a price-to-book ratio at 0.40 and thus a book value per share of EUR 63.12 (in the last quarter). Finally, MT approved a further buyback of up to 85m shares (~$2.4bn at today’s share price). A program already started at the end of 2021 from which we have witnessed a 27 percent drop in outstanding shares.
TP @ 30.50 EUR (22.98%)
SL @ 23.00 EUR (-7.26%)
Technical Analysis
This stock has formed a Continuation Wedge pattern (Bullish), providing a target price for the intermediate-term in the range of 30.50 to 32.00, the Momentum oscillator has crossed above 0, thereby signaling a new accelerating uptrend. The stop loss was placed just below the invalidation point of this figure, which coincides with the annual low and two dynamic supports on the weekly and monthly (EMA 200 and EMA 50).
Fundamental Analysis
Based on 16 institutional analysts 12 gave a “Strong Buy” rating while 4 left the position on “Hold”. ArcelorMittal holds a price-to-earnings ratio of 3.64, a figure greater than 9% of its sector peers. The company’s price-to-free cash flow ratio is 4.43, greater than 14% of its sector peers. Moreover, the price is trading well below its intrinsic value where we find a price-to-book ratio at 0.40 and thus a book value per share of EUR 63.12 (in the last quarter). Finally, MT approved a further buyback of up to 85m shares (~$2.4bn at today’s share price). A program already started at the end of 2021 from which we have witnessed a 27 percent drop in outstanding shares.