ArcelorMittal is down nearly 2% in Paris after Oddo BHF confirmed its 'outperform' rating on the stock, while lowering its target price from 34 to 32 euros.

The analyst reports that expectations have been lowered for Q2 and Q3 'due to various incidents' in recent months, with particular reference to the strike at the Mexican steel mill which began on May 24 and has no prospect of resolution in the short term.

As a result, Oddo BHF has lowered its Q2 adjusted EBITDA expectations by 8% to $1.74 billion, after having already adjusted them by 6% on June 20 following a previous company contact.

Beyond this operational situation, the market context remains unpromising, mainly due to weakness in China, adds the broker, who thus evokes "expectations that have also been lowered in the medium term".

The analyst concludes that "the mixed macro situation and the uncertainty surrounding the resolution of the social conflict in Mexico do not, however, argue in favor of a rapid re-rerating".

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