ArcelorMittal Stock: Over 3% Decline Despite Two Analyst Target Upgrades
ArcelorMittal's stock has significantly declined this Friday, February 13, dropping 3.35% to 50.72 euros after closing at 52.48 euros the previous day. This downturn occurs amidst a strong three-month surge, with the stock still showing a gain of over 45% for this period. Despite this, two major banks have substantially raised their price targets for the steel company.
Contrasting Signals from Analysts
The day's decline contrasts with signals from research offices. On February 13, Citi raised its price target on ArcelorMittal SA from 55 to 66 euros, accompanied by a 'buy' recommendation. Two days earlier, Jefferies had already made a significant adjustment, increasing its target from 44 to 62 euros while shifting from a 'hold' to a 'buy' recommendation. At the current price of 50.72 euros, these two targets imply a respective upside potential of about 30% and 22%. These notable revisions reflect a re-evaluation of the Luxembourg-based group's prospects by two leading institutions, in a context where the stock has almost doubled in a year, advancing 88.9% over the past twelve months.
Technical Analysis Perspective
From a technical analysis standpoint, the stock maintains a favorable medium-term configuration. The price is significantly above its 50-day moving average, which is at 42.07 euros, a gap of over 20%. This distance indicates the strength of the bullish trend initiated in recent months, but it may also signal a need for consolidation, which seems to be starting in today's session. The RSI, an indicator measuring the speed and magnitude of recent price changes, stands at 67, a high level but not crossing the conventional overbought threshold of 70. The nearest resistance is at 55.24 euros, about 9% above the current price. The next financial communication is scheduled for April 30, when the group will publish its first-quarter 2026 results.
