Morgan Stanley | STEEL Alain Gabriel publishes today a recap presentation with the main figures and trends in European steel. His main OWs remain Arcelor and voestalpine (the latter he upgraded to OW last week) and Acerinox and Outokumpu in stainless steel.
STEEL Arcelor- trades at a steep discount to its cyclical low multiple with normalised earnings and offers an interesting risk-return 12 months ahead.
The new ebitda calculation perimeter, which includes jov and associates, should increase the market’s focus on growth potential.
Despite the purchase of the stake in Valourec, there is still room for re-rating and share buybacks.
STAINLESS STEEL Acerinox- good self help track record in market environments like this.
Downstream expansion points to higher capex commitments in the coming years.
Valuation is attractive against its historical average and peers.
