While maintaining its 'buy' recommendation on Eramet, BofA Global Research has lowered its price target from 120 to 110 euros, after the Group reduced its 2024 targets for Comilog (manganese ore) and PT Weda Bay (nickel ore).
With these new volume forecasts coming in below the broker's expectations, he has updated his model for the mining and metallurgical company, with a 24% reduction in EBITDA expected for 2024, to €678 million.
'The downgraded forecasts are disappointing, but we think the share has already moved as a result of the downgraded outlook for Chinese steel and manganese ore prices', he believes.
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Eramet, a global mining and metallurgical group, is a key player in the extraction and valorisation of metals (manganese, nickel, mineral sands) and the elaboration and transformation of alloys with a high added value (high-speed steels, high-performance steels, superalloys, aluminium and titanium alloys).
The group supports the energy transition by developing activities with high growth potential. These include lithium extraction and refining, and recycling.
Eramet positions itself as the privileged partner of its customers in sectors that include carbon and stainless steel, aerospace, pigments, energy, and new battery generations.
Building on its operating excellence, the quality of its investments and the expertise of its employees, the group leverages an industrial, managerial and societal model that is virtuous and value-accretive.
Net sales break down by family of products mainly between manganese (60.8%), nickel (30.6%), and mineralized sands (8.5%).
Net sales are distributed geographically as follows: France (1.3%), Europe (20.4%), China (31.1%), Asia (29%), North America (12.4%), Africa (2.3%), Oceania (2.2%) and South America (1.3%).
ERAMET 
