ArcelorMittal SA (ADR) (NYSE:MT) shares have been sent soaring today after the U.S. Department of Commerce elected to begin taxing Chinese imports of corrosion-resistant steel from China at 256 percent. This move comes as the USDC discovered that cheaply imported steel from China was being sold at prices detrimental to U.S. Steelmakers.
Investors flocked to ArcelorMittal SA (ADR) (NYSE:MT) after the news, as they are the world’s largest steelmaker, and they stand to benefit the most from such an import tax.
The stock is up 13.22% or $0.55 following the news, hitting $4.71 per share. About 827,544 shares traded hands. MT has declined 63.15% since May 20, 2015 and is downtrending. It has underperformed the S&P500 by 60.89%.
From a total of 7 analysts covering Arcelormittal (NYSE:MT) stock, 3 rate it a “Buy”, 0 a “Sell”, and 4 a “Hold”. This means that 43% of the ratings are positive. The highest target price is $13 while the lowest target price is $7. The mean of all analyst targets is $9 which is 91.08% above today’s ($4.71) stock price. Arcelormittal was the topic of 14 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. HSBC downgraded shares on December 7 to a “Hold” rating. Credit Suisse downgraded MT stock in a recent report from October 23 to a “Neutral” rating. Finally, JP Morgan upgraded the stock to a “Overweight” rating in a report they issued on an October 9.
ArcelorMittal SA is a holding company. The company has a market cap of $7.71 billion. The Firm is a steel and mining company, which operates through five divisions: NAFTA; Europe; Brazil; Africa and Commonwealth of Independent States (ACIS), and Mining. It currently has negative earnings. The Firm produces a range of finished and semi-finished steel products.