Oddo BHF maintains its 'outperform' rating on ArcelorMittal shares, with a price target lowered from 34 to 32 euros.

The analyst reports that expectations have been lowered for the 2nd and 3rd quarters 'due to various incidents' in recent months, with particular reference to the strike at the Mexican steel mill which began on May 24 and has no prospect of resolution in the short term.

As a result, Oddo BHF has lowered its Q2 adjusted EBITDA expectations by 8% to $1.74 billion, after having already adjusted them by 6% on June 20 following a previous company contact.

Beyond this operational situation, the market context remains unpromising, mainly due to the weakness in China, adds the broker, who thus evokes "expectations that have also been lowered in the medium term".

"The mixed macro picture and uncertainty over the resolution of the social conflict in Mexico do not, however, argue in favor of a rapid re-rerating", concludes the analyst.

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