Stifel downgrades its recommendation on Eramet from 'buy' to 'sell', with a price target drastically reduced from 150 to 45 euros, the day after the mining group cut its manganese and nickel ore production forecasts.
This revision, combined with the fall in manganese prices, leads the broker to sharply reduce its earnings estimates. On a more serious note, this announcement changes the Group's profile', it believes, and it will have to focus on optimizing its costs.
'With no further growth prospects (apart from lithium), Eramet can no longer expect a fundamental revaluation of its share price', continues Stifel in the summary of its research note.
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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 
