ArcelorMittal Soars 5.25% After Citi Raises Target to 55 Euros
On Thursday, January 22, Citi raised its price target on ArcelorMittal to 55 euros, the highest in the consensus, boosting the stock by 5.25% to 45.87 euros. However, an RSI of 76 indicates an overbought zone after six consecutive sessions of gains.
Citi Elevates ArcelorMittal's Target Amid Sector Reevaluation
This Thursday, Citi raised its price target on ArcelorMittal SA to 55 euros from a previous 45 euros, while reiterating its buy recommendation. This revision follows those from Jefferies and Goldman Sachs on January 14, who had set their targets at 44 and 36 euros respectively. The analysts' positioning is part of a broader reevaluation of the European steel sector. Recent revisions reflect expectations of an improved market environment, driven by the implementation of the Carbon Border Adjustment Mechanism in January 2026. This scheme is expected to add between 40 and 70 euros per ton to the price of imported steel, thereby limiting competition from low-cost products and supporting European producers' margins. Investors are now looking forward to the publication of the 2025 annual results on February 6 to validate this recovery scenario.
Technical Analysis: Bullish Trend Enters Caution Zone
Graphically, the stock exhibits a bullish configuration but is entering a caution zone. The RSI reaches 76, exceeding the overbought threshold of 70, suggesting a potential short-term exhaustion after six uninterrupted sessions of gains. This reading is especially significant as the stock is now well above its moving averages, with the MM50 at 38.05 euros and the MM200 at 31.07 euros, confirming the strength of the underlying trend. While breaking the previous resistance level at 43.58 euros certainly paves the way for new highs, it also exposes the stock to profit-taking after a nearly 100% rise over the year. The MACD displays a positive histogram at 0.20, confirming the ongoing bullish momentum, while the price moves above the upper Bollinger band set at 43.45 euros. This configuration reflects an extension of the movement that may require a consolidation phase before considering a new impulse. The next sessions will determine the stock's ability to digest these gains or continue its ascent towards Citi's ambitious target.
