ArcelorMittal Shares Drop 6% Following Sharp Downgrade by JP Morgan
ArcelorMittal SA experienced a significant decline of 6.05% at midday this Monday, reaching €45.00, amid a generalized retreat in European markets. The steelmaker's stock has had a particularly tough week, with a cumulative loss of nearly 19% over seven days. This downturn coincides with a significant downgrade in JP Morgan's recommendation for the stock.
The highlight of the session for ArcelorMittal SA is the turnaround by JP Morgan, which on March 9th published a notable downgrade of its recommendation on the stock. The American bank shifted from 'overweight' to 'underweight' and reduced its price target from €53.50 to €40.00, a reduction of over 25%. Given the current price of €45.00, this new target implies a potential downside of about 11%, indicating that JP Morgan anticipates further erosion of the stock. This radical change in stance is all the more significant as it comes from an institution that had been a supporter of the stock until now. The release of this note coincides with a day of tension across financial markets: the CAC 40 fell by 2.18% during the session, while the Nikkei 225 closed down 5.20% this Monday. The Hang Seng also ended the day down by 1.35%.
Technical Deterioration of the Stock
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Technically, the deterioration of the stock is significant. The price of €45.00 is now below its identified support at €45.61, which constitutes a downward breach likely to fuel additional selling pressure. The 50-day moving average, located at €47.15, has just been breached, confirming the deterioration of the short-term dynamic. Meanwhile, the RSI stands at 38, approaching the traditionally set oversold zone at 30, reflecting the magnitude of the recent downward movement. Despite this downturn, it is worth noting that the three-month performance remains positive at 22.08%, and the stock still shows a gain of 47.64% over one year, with the 200-day moving average significantly below, at €34.94. The next milestone for market participants will be the publication of the first quarter 2026 results, scheduled for April 30th.
Nous restons confiants dans les perspectives d'ArcelorMittal pour le reste de l'année.
Résultats du 1er trimestre démontrant une résilience avec des marges améliorées.
Risks mentioned
Les taux de change et autres charges financières nettes s'élevaient à 80 M$ au 1T 2026.
La dépense d'impôts sur le revenu pour le 1T 2026 était de 136 M$.
L'augmentation de la dette nette à 9,3 milliards $ pourrait affecter la perception des investisseurs.
Pressions sur le coût des matières premières en raison de l'inflation.
Opportunities identified
L'augmentation de la production d'acier brut à 13,3 Mt en 1T 2026.
Le programme d'investissement stratégique en cours offre un potentiel de croissance.
Le redémarrage des hauts-fourneaux inactifs à Fos et Dabrowa a été préparé.
Les investissements dans de nouveaux fours à arc électrique augurent de meilleures performances.
The information presented in this article is provided for informational purposes only and does not constitute an investment recommendation, an incentive to buy or sell a financial asset, or investment advice. Readers are invited to conduct their own research before making any decision.
Investments in the stock market involve risks, including the risk of capital loss. Past performance of an asset or market is no guarantee of future results. Any investment decision should be made taking into account your personal financial situation, objectives and risk tolerance.
