Latest news with #DominicO'Kane
Business Insider
3 days ago
- Business
- Business Insider
Voestalpine price target lowered to EUR 24.30 from EUR 25 at JPMorgan
JPMorgan analyst Dominic O'Kane lowered the firm's price target on Voestalpine (VLPNY) to EUR 24.30 from EUR 25 and keeps a Neutral rating on the shares. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Yahoo
27-05-2025
- Business
- Yahoo
JP Morgan Stays Neutral on ArcelorMittal (MT) Amid Uncertainty
On Tuesday, May 27, JP Morgan analyst Dominic O'Kane maintained a Neutral rating on ArcelorMittal S.A. (NYSE:MT) with an unchanged price target of €30.5. His stance reflects the mixed implications of a potential deal between Nippon Steel (OTC:NPSCY) and United States Steel (NYSE:X), which recently received support from President Trump. On the positive side, O'Kane believes the transaction could significantly benefit ArcelorMittal. He pointed to an October 2024 agreement between ArcelorMittal and Nippon Steel regarding their 50/50 joint venture for the Calvert mill. Under the agreement, ArcelorMittal would have the right to acquire Nippon's 50% stake in the mill for just $1. In exchange, Nippon would inject capital and forgive approximately $900 million in partner loans. The Calvert mill is a strategic asset in the U.S. flat steel market, and its ownership will provide ArcelorMittal with a potential competitive edge. A machinist inspecting a freshly-cut steel beam, ready to be shipped to its intended destination. However, the analyst notes that, according to the Calvert agreement terms, this benefit depends entirely on Nippon completing its acquisition of U.S. Steel; otherwise, the JV will continue. The acquisition by Nippon has not yet been confirmed and may ultimately take the form of a partnership rather than a complete takeover. This adds uncertainty to the transaction and its financial benefits to ArcelorMittal. Additionally, tariff-related supply chain exposure remains a structural risk for ArcelorMittal. Therefore, the analyst maintained a cautious stance on the stock. ArcelorMittal is one of the world's leading integrated steel and mining companies, the largest steel producer in Europe, and among the largest in the Americas. While we acknowledge the potential of MT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MT and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Sign in to access your portfolio
Zawya
06-02-2025
- Business
- Zawya
ArcelorMittal sees rising steel demand after strong 4th quarter
On Thursday forecast improving steel demand for 2025 and said its annual investment budget would be similar to last year's, after its fourth quarter earnings exceeded market expectations. Shares of the world's second largest steelmaker rose 6.6% by 1042 GMT to their highest price since April 2024. "Expectations for profit were weak in Europe. Demand is weak, but the company has been very profitable in Europe, indicative of the resilience of their business," analyst Dominic O'Kane said. ArcelorMittal reported a 13% rise in its quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA) to $1.65 billion, a nearly 8% beat to analysts' consensus provided by the company. "The long-term outlook for the steel industry is positive and our global presence means we have a unique opportunity to prioritize investment in markets where there is a strong outlook for growth and returns," CEO Aditya Mittal said in a statement. The Luxembourg-based company expects to invest between $4.5 billion and $5.0 billion this year, in line with its 2024 plans. Mittal said the primary investment focus would be in Brazil, India and the United States. In a separate statement, ArcelorMittal said it would build a new steel plant in Calvert, Alabama to meet growing demand from U.S. automakers. The group expects global steel demand to grow between 2.5% and 3.5% this year excluding China, the world's top consumer and producer of the metal. It raised its dividend by 10% compared to last year and will pay out $0.55 per share for 2024. ArcelorMittal shipped some 13.5 million metric tons of steel in the fourth quarter, slightly up from the same period in 2023 and from the third quarter. Its Swedish peer SSAB also topped quarterly profit expectations last week, buoyed by resilient demand for its high-strength steel.
