Oddo BHF reaffirms its 'outperform' rating on Eramet, with a price target lowered from €126 to €109, in the wake of a significant reduction in production targets for its manganese ore operations in Gabon and its nickel operations at Weda Bay.
This decision reflects a pronounced imbalance between sluggish demand from the Chinese steel sector and oversupply following the explosion in prices over the summer", explains the analyst, who reduces his expectations for adjusted EBITDA 2024.
Despite the current air pocket, we remain positive on the Group, which has assets that are all well positioned on the cost curve, and good prospects for production expansion in the short and medium term', he nevertheless judges.
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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 (70.3%), mineralized sands (10.8%) and nickel (4.8%).
Net sales are distributed geographically as follows: France (1.2%), Europe (26.1%), China (23.7%), Asia (29.1%), South America (13.9%), Africa (3.4%), North America (1.8%), Oceania (0.8%).
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