J.P. Morgan turns 'constructive' on European steel sector
BUZZ-J.P. Morgan turns 'constructive' on European steel sector ** J.P. Morgan turns European Steel sector "constructive as safeguards take effect"
** The broker expects Q2 reporting to refocus attention on the transformative impact of around 40% cuts to EU steel imports and 50% import tariffs effective July 1
** "EU Steel mills have attempted to raise prices and we expect an EU re-stocking cycle will start by end of Q3," said the broker
** J.P. Morgan ups ArcelorMittal MT.LU to "neutral" from "underweight", seeing positive midterm earnings trajectory
** The broker double upgrades Voestalpine VOES.VI and Salzgitter SZGG.DE to "overweight" from "underweight", seeing "greater price target upside"
** Shares in Salzgitter are seen up 6% in early Frankfurt trade
COMPANY | RATING | OLD RATING | PT | OLD PT |
Acerinox ACX.MC | Underweight | Underweight | €14.40 | €11.40 |
Aperam APAM.AS | Neutral | Neutral | €46.10 | €42.70 |
ArcelorMittal | Neutral | Underweight | €57.00 | €45.00 |
Salzgitter | Overweight | Underweight | €65.00 | €31.40 |
Outokumpu OUT1V.HE | Neutral | Neutral | €5.10 | €5.90 |
Voestalpine | Overweight | Underweight | €50.00 | €40.00 |
ThyssenKrupp TKAG.DE | Neutral | Neutral | €12.80 | €11.80 |
SSAB-B SSABb.ST | Neutral | Neutral | SEK 90.00 | SEK 78.00 |
SSAB-A SSABa.ST | Neutral | Neutral | SEK 94.00 | SEK 81.00 |
(Reporting by Margaux Perrin and Mathias de Rozario in Gdansk)
((Margaux.Perrin@thomsonreuters.com))