On Friday Deutsche Bank reiterated its buy recommendation and €30 target price for ArcelorMittal shares, following the steelmaker's takeover of the Calvert steel mill in the US, a move that the broker views favorably.

The analyst points out that, following the acquisition of US Steel by Nippon Steel, ArcelorMittal bought back the 50% stake it did not already hold in the project on financial terms it considered favourable.

According to the information that has been disclosed, Arcelor will take control of this steel mill, one of the most advanced in the US in terms of flat products, on the basis of an EV/EBITDA multiple of around 2.7x, compared with an average of 7x to 8x for the rest of the sector, he points out.

'We believe this is an excellent transaction from a business perspective,' the professional added.

Deutsche Bank, which acknowledges that some of this good news had already been partially factored into the share price, emphasizes that this transaction will strengthen the group's portfolio, which supports its positive view on the stock.


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