On Tuesday, ArcelorMittal (NYSE:MT:NA) (NYSE: MT) saw its stock price target increased by Morgan Stanley to EUR30.60, up from the previous target of EUR30.00. The firm has kept its Overweight rating on the steel and mining company's shares.
The adjustment follows ArcelorMittal's first-quarter earnings before interest, taxes, depreciation, and amortization (EBITDA) which surpassed expectations. Morgan Stanley anticipates that the company will maintain a stable profit level into the second quarter, prompting an upward revision of full-year forecasts.
According to the firm's analysis, the 2024 EBITDA estimates for ArcelorMittal have been raised by 8%, which has contributed to the 2% increase in the price target. Despite the adjustment for 2024, the subsequent EBITDA estimates for the company remain closely aligned with previous forecasts, showing a variance within 1.5%.
The Overweight rating has been reaffirmed, indicating Morgan Stanley's continued positive outlook on the stock. The firm's assessment reflects confidence in ArcelorMittal's financial performance and the expectation of sustained profitability in the near term.
InvestingPro Insights
In light of Morgan Stanley's positive outlook on ArcelorMittal, current real-time data from InvestingPro provides additional context. As of the latest metrics, ArcelorMittal boasts a market capitalization of $21.07 billion and a strong Price to Earnings (P/E) ratio of 8.14, indicating a potentially undervalued stock compared to its earnings.
Furthermore, the company has demonstrated a commitment to shareholder returns, not only by raising its dividend for three consecutive years but also by achieving a dividend growth of 13.64% in the last twelve months as of Q1 2024. This aligns with one of the InvestingPro Tips highlighting ArcelorMittal's high shareholder yield.
Another InvestingPro Tip points out that the company is a prominent player in the Metals & Mining industry, trading at a low revenue valuation multiple. With a Price / Book ratio of 0.39 and a fair value estimate by InvestingPro at $34.84, higher than the current price, there may be room for growth.
Investors seeking additional InvestingPro Tips on ArcelorMittal can explore more at https://www.investing.com/pro/MT, with the opportunity to use coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription. It's worth noting that 12 more InvestingPro Tips are available, offering deeper insights into the company's performance and potential.
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