NEW YORK (TheStreet) -- ArcelorMittal (MT) - Get Report shares are spiking by 3.92% to $6.10 on Wednesday afternoon, after Jefferies upgraded its rating the company's stock to "buy" from "hold" and hiked its price target to $7 from $4.50.

It looks like Euro carbon steel prices are likely to gain momentum, boosted by an emerging cyclical supply squeeze.

"While we remain fundamentally cautious on the industry in the long-term driven by massive global overcapacity, the European market is at the early stages of a cyclical upturn that may last for the coming quarters," analysts said. 

Along with this bullish sentiment, the steel market in China is stabilizing as steel prices have rallied 53% since December lows.

Based in Luxembourg, ArcelorMittal operates as an integrated steel and mining company worldwide.

Separately, TheStreet Ratings currently has a "Sell" rating on the stock with a letter grade of D.

The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally high debt management risk and generally disappointing historical performance in the stock itself.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles' author.

You can view the full analysis from the report here: MT

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