ArcelorMittal SA (NYSE:MT) is one of the top steel stocks to buy amid US tariffs. The stock has been on an impressive run, with a 66% year-to-date gain. Analysts at Goldman Sachs downgraded ArcelorMittal SA (NYSE:MT) to ‘Neutral’ from ‘Buy’ on October 10.
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The downgrade came amid confidence that the stock remains fully valued at current levels after an impressive year-to-date rally. The stock has gained 54.8% since Goldman Sachs added it to its Buy list, benefiting from a spike in steel prices amid US tariffs. Goldman Sachs expects capacity cuts in China to bolster steel prices, which should enhance the company’s prospects.
Similarly, raw material deflation has bolstered the company’s margins. In addition, safeguards in key markets, such as Europe and India, are expected to strengthen stock sentiment further. Likewise, the investment bank has warned that high energy costs could limit further gains.
While the risk-reward for ArcelorMittal remains balanced at current levels, Goldman Sachs expects the company to benefit from sustained cost tailwinds and effective EU policy change. The EU has proposed reducing tariff-free import volumes by 47% to 18.3 million tons.
ArcelorMittal SA is a leading steel and mining company that produces and sells steel products for industries like automotive, construction, and household appliances. The company is also involved in mining iron ore and metallurgical coal to supply its steelmaking operations, and it focuses on developing innovative, sustainable, and lower-carbon steel solutions.
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This article is originally published at Insider Monkey.
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