ArcelorMittal rises after MS upgrade to 'overweight'

ArcelorMittal SA

07/01/2026 08:32

** Shares in ArcelorMittal MT.AS rise around 3% after Morgan Stanley upgraded its rating on the stock to "overweight" from "equal-weight", citing limited risks and the company's good position in case of Europe's economic recovery

** The analysts say in a note their full-upside scenario sees the steelmaker valuation offering a 45-50% discount compared with historical levels

** "Upside to earnings would support accelerated buybacks alongside base dividends, reinforcing equity upside," MS says

** They also add that the "pragmatic" approach to decarbonisation with step-by-step investments limits company's financial risk

** MS also raised its PT on the stock by 37% to 46.20 euros ($53.97)

($1 = 0.8561 euros)

(Reporting by Mateusz Rabiega)

((Mateusz.rabiega@thomsonreuters.com))