ArcelorMittal goes up almost 10% in its best session since 2016

Finally the good news returns to the house of ArcelorMittal and these have come as a result of their annual results, which has surprised beating market expectations. The reaction has been immediate, with promotions in the parquet approaching the 10% in its most bullish session since the end of 2016.

These increases have allowed the steelmaker, which is part of the 'Tressis Eco30 portfolio', erase losses harvested in the year after having spent a very complicated 2019, in which their actions were left a 14%.

Analysts who have pronounced agree to rate Arcelor's results very positively, especially for the positive the forecasts from the company itself for the near future.

From Jefferies they point out that “this improvement has come for a better evolution in North America, Europe and Brazil“.” The forecasts for 2020 are more optimistic, with potential demand acceleration“they add.

For their part, the experts of Morgan Stanley, who recommend buying the actions of the Luxembourg-based firm add that the deleveraging rate is being larger than expected. “

Finally, from Goldman Sachs they point out that the results “have been positive” and that “the dividend has also surprised upwards, while the debt reduction has been greater than expected.” In this regard, they have announced that they will pay a dividend in line with that of last year, that is, of 0.20 euros per share, which at current prices offers a return on 1.3%.

ArcelorMittal continues to receive a purchase recommendation by the consensus of analysts, which also gives it a bullish potential of the eleven% additional up to 17.50 euros in those who set their target price.

Buy only if you consolidate

From a technical point of view, Joan Cabrero, director of strategy of Ecotrader, points out that “this strong rebound from the support of the 13 euros we monitor it carefully since it fits with a wide turning pattern. “

Operationally, “after today's strong rises any consolidation can be used to buy with stop under 13.20 euros, especially, if the EuroStoxx 50 manages to beat resistances such as the 3,780 points and the Ibex 35 the 9,800“concludes the expert.

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ArcelorMittal raises prices again in the United States