Oddo BHF reiterates its 'outperform' rating on ArcelorMittal, which remains its favorite stock in the sector along with SSAB, but cuts its target price from 32 to 30 euros in the wake of a slight reduction in its forecasts for the steelmaker.

While it believes that the group will find it difficult to regain investors' favor quickly, the research department points to 'currently low utilization rates, especially in Europe, which could enable significant growth in profitability in the event of a rebound'.

Even in the absence of a strong recovery, it should enjoy good growth prospects from 2025 onwards. In addition, the low valuation and prospects for share buybacks limit the risk of further downside', adds the analyst.

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