MS cuts Aperam to 'equal weight', sees priced-in recovery

Aperam SA

Tue 08:21

** Morgan Stanley downgrades Luxembourg-based stainless steel producer Aperam APAM.AS to "equal weight" from "overweight", saying first phase of recovery is now priced in
** "The European stainless structural reset remains intact, supported by policy, but we view the first leg of the recovery as largely reflected in estimates and valuation," says the broker in a note
** It notes European market conditions are improving on the back of protectionist measures, with Aperam seen as a strong proxy to play this trend
** MS highlights Aperam's solid European exposure, integrated model, diversified earnings base and strong cash generation as key strengths
** While the broker raises its PT by 8% to EUR 52, it says the near-term rate of change has slowed with prices and spreads levelling off amid weaker summer seasonality
** Among the 12 analysts covering Aperam, three rate the stock "strong buy" or "buy,"​ seven rate "hold" and two​ rate the stock "strong sell" or "sell" - LSEG data


 (Reporting by Clement Martinot)
 ((Clement.Martinot@thomsonreuters.com;))