Oddo BHF has reaffirmed its 'outperform' rating on Eramet, with a price target raised from 109 to 157 euros, to take into account the increase in its short-term forecasts, as well as the recent rise in reserves announced by the Group.

After a difficult 2023, the planets are finally aligning for Eramet with the combination of good prices and exchange rates, rising production and well-controlled costs", says the analyst, pointing to the surge in manganese prices.

Oddo BHF now expects adjusted EBITDA for 2024 to be 1.11 billion euros (compared with 757 million), and considers the valuation 'more attractive than ever, with a 2025 EBITDA multiple of 3.8 times, almost a third lower than that of the major mining companies'.

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