ArcelorMittal Shares Drop 6% Despite ING Raising Target to 64 Euros
ArcelorMittal's stock experienced a sharp decline this Tuesday, March 3, dropping nearly 6% to 51.28 euros after closing at 54.54 euros the previous day. This correction occurs as European markets face repercussions from the conflict in Iran, which has led to a surge in energy prices. Over the week, the stock has shown a decline of 9.21%, although its three-month performance remains solidly positive at 37.41%.
Context of the Decline
The decline observed this Tuesday in ArcelorMittal is part of a correction following a remarkable progression. The stock has gained more than 37% over three months and nearly 87% over a year, making a pullback plausible from a technical perspective. The price is now slightly below its 20-day moving average, which is at 53.21 euros, while still significantly above the 50-day average (46.21 euros). This positioning suggests that the medium-term bullish momentum is not yet questioned at this stage, despite the magnitude of today's drop. The RSI, at 55, remains in the neutral zone, indicating neither overbought nor oversold conditions.
The spike in oil and natural gas prices, fueled by tensions around the Strait of Hormuz and concerns about Middle East stability, directly impacts the steel industry. Brent crude jumped to $80 a barrel while European gas (TTF) soared by nearly 25%. For a company like ArcelorMittal, which is a heavy consumer of energy, the sudden increase in energy costs is an immediate pressure factor on margins, contributing to the extent of the title's drop compared to the general decline in European stock markets, limited between 1 and 3%.
Contrary to the Difficult Session
Against the backdrop of a challenging session, ING Bank has significantly revised its price target on ArcelorMittal upwards, from 38 to 64 euros, while maintaining its buy recommendation. This new target, published on March 2, implies a revaluation potential of about 25% compared to the current price of 51.28 euros. The magnitude of the revision—a near doubling of the target—reflects a deep reassessment of the group's prospects by the Dutch institution.
This increase comes in a financial calendar that will see the publication of the first quarter 2026 results on April 30. Investors will then have concrete elements to assess the impact of the recent economic environment, both in terms of steel demand and production cost developments. The gap between the current valuation and ING Bank's target could fuel discussions in the coming weeks, particularly if geopolitical tensions were to ease or if energy prices were to decline.
