Oddo BHF reaffirms its 'outperform' rating on ArcelorMittal, but lowers its target price from €37 to €34, in the wake of a reduction in its estimates for the steel giant.

"Like the sector, the stock is on a downward trend, and given its mid-range positioning and diversified exposure, it remains highly sensitive to the international economic situation", the analyst points out.

Momentum could now improve with the rate-cutting cycle underway in Europe and soon in the United States, and the ramp-up of growth projects from the second half of the year onwards", he believes.

Oddo BHF adds that share buybacks should continue to support prices, and that the valuation, at its lowest since October 2022, 'obviously remains an asset, even if the gap has narrowed somewhat with other peers recently'.

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