Oddo BHF reiterates its 'outperform' rating on Eramet, with a price target raised from €157 to €177, following the inauguration of Centenario, a 'crucial milestone that should strengthen the Group's profile by anchoring it in the energy transition'.
The exceptional momentum on manganese resulting from the shutdown of GEMCO production in Australia is continuing and seems to be gaining momentum, while stocks in Chinese ports are getting lower and lower, a phenomenon that should continue until 2025", it adds.
The research department also points to a still-attractive valuation, with an EV/EBITDA 2025 multiple of three times, offering a discount of over 40% on peers, even though the financial structure is now completely sound.
Copyright (c) 2024 CercleFinance.com. All rights reserved. The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
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 
