ArcelorMittal target price raised to €57 by JPMorgan

JPMorgan upgraded its outlook on European steelmaker ArcelorMittal, lifting the price target from €45 to €57 per share and moving the rating from Underweight to Neutral. Analyst Dominic O’Kane said the bank expects protective measures adopted by the EU to start bearing fruit, with steel prices projected to rise in the second half of the year. The bank cautioned that no positive surprises are expected for the upcoming Q2 earnings season, but sees the sector’s margins improving later.

The positive stance extended to other European steel firms. JPMorgan highlighted a constructive outlook for the sector, noting the impact of EU import quotas and a 50% tariff on steel imports that began on 1 July. Shares of Salzgitter, Voestalpine, Acerinox, ThyssenKrupp, SSAB, Outokumpu and Aperam were also mentioned, with new price targets set for several of them.

Overall, the rating change reflects JPMorgan’s view that the European steel industry is moving toward a more favorable pricing environment, which could benefit profitability across the sector in the coming quarters.