Markets
MT

Arcelor Mittal (MT) - Bear of the Day

Arcelor Mittal ( MT ) reported a diluted net loss of $0.65 per share in the fourth quarter of 2011, missing the Zacks Consensus Estimate for a profit of $0.10. Revenues of $22.4 billion were down 7.3% sequentially, primarily due to lower average selling prices for steel (-6.2%) and a lower volume of shipments (-2.5%).

Arcelor Mittal expects its EBITDA in the first half of 2012 to be lower than the first half of 2011, but above the second half of 2011, supported by continued progress on management gains and asset optimization plans. Furthermore, the company will continue to calibrate its steel growth projects for evolving demand situations, driven by the recent market uncertainty resulting from the European debt crisis and its potential global impact.

We, therefore, downgrade our recommendation on the stock to Underperform from Neutral with a new target price of $21.00. This target is based on 8.3x 2012 EPS.

ARCELOR MITTAL ( MT ): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

MT

Other Topics

Investing Stocks