NEW YORK (TheStreet) -- ArcelorMittal (MT) shares were downgraded to "neutral" from "outperform" by Credit Suisse (CS) Wednesday. The firm lowered the company's price target to $17 from $20.
ArcelorMittal shares were down 2.8% to $15.87 in early trading Wednesday.
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Credit Suisse pointed to a bleak earnings picture in the second quarter for the steel producer as the reason for the downgrade.
"We downgrade the stock to neutral from outperform on lack of earnings momentum, cycle risk and valuation. Although our base case of a restock in the ex-China market remains intact , the timing of this has become increasingly uncertain again, and it is clear that the strong Q2 we had hoped for and expected is now very likely to emerge" Credit Suisse said.
"As such earnings run rates entering the summer are likely to be considerably lower than we had previously forecast and as a consequence we cut our forecasts for 2014 earnings and price target."
Separately, TheStreet Ratings team rates ARCELORMITTAL SA as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate ARCELORMITTAL SA (MT) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and revenue growth. However, as a counter to these strengths, we also find weaknesses including poor profit margins and weak operating cash flow."