Aperam: Oddo BHF downgrades stock
10:50 30/06/2023
(CercleFinance.com) - On Friday Oddo BHF downgraded Aperam shares from 'neutral' to 'underperform', lowering its target price for them from E41 to E31.
In its comments, the broker believes that the solid prospects posted by the steelmaker in Brazil will not be able to compensate for the current weakness in Europe.
Of course, Oddo acknowledges that the stainless steel and special steels producer benefits from strong assets in Brazil, a country which generates about 40% of its EBITDA and which should support its trajectory over the next few years.
However, the analyst also believes that the current trend is dominated by the weakening economic situation in Europe (60% of Ebitda), a phenomenon it believes is exacerbated by intense competition, which has led it to sharply reduce its expectations.
Solid cash generation and a shareholder-friendly financial policy remain important assets, as does a satisfactory ESG profile, however they are insufficient to compensate for the lack of visibility on an imminent turnaround in Europe, Oddo says.