Oddo BHF maintains its 'neutral' rating on Eramet shares, with a slightly reduced price target, from 91 to 89 euros.
The analyst points out that while major mining groups (Rio Tinto, BHP, Anglo American) are currently benefiting from high copper and especially iron prices, "this is not the case for Eramet, which is mainly exposed to manganese and nickel".
With Eramet due to publish its Q3 sales on October 26, Oddo BHF expects sales of €899 million (excluding ETI, sold on September 21), down 29% year-on-year due to the fall in commodity prices.
Oddo BHF has nonetheless revised its 2023 forecasts slightly upwards to incorporate a slightly more optimistic scenario for nickel, with the recent rise in ore prices and higher production figures for SLN.
On the other hand, 'beyond 2023, we have revised our forecasts downwards quite drastically (-28% on average) to take into account the fall in manganese and especially lithium prices', concludes the analyst.
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Eramet, a global mining and metallurgical group, is a key player in the extraction and valorisation of metals (manganese, nickel, mineral sands) and the elaboration and transformation of alloys with a high added value (high-speed steels, high-performance steels, superalloys, aluminium and titanium alloys).
The group supports the energy transition by developing activities with high growth potential. These include lithium extraction and refining, and recycling.
Eramet positions itself as the privileged partner of its customers in sectors that include carbon and stainless steel, aerospace, pigments, energy, and new battery generations.
Building on its operating excellence, the quality of its investments and the expertise of its employees, the group leverages an industrial, managerial and societal model that is virtuous and value-accretive.
Net sales break down by family of products mainly between manganese (60.8%), nickel (30.6%), and mineralized sands (8.5%).
Net sales are distributed geographically as follows: France (1.3%), Europe (20.4%), China (31.1%), Asia (29%), North America (12.4%), Africa (2.3%), Oceania (2.2%) and South America (1.3%).
ERAMET 
