LONDON (ShareCast) - Nomura has downgraded the European steel sector this morning to neutral from overweight, saying that the sector has risen around 45% since the late November (Stuttgart: A0Z24E - news) lows and is now trading at an average of 6.5 to 7 times 2012 estimated EBITDA (earnings before interest, tax, depreciation and amortisation). Nomura says "European steel equities need to pause for breath to allow fundamentals to catch up." However, Nomura remains optimistic over the mining and metals sector in Europe (Chicago Options: ^REURUSD - news) . In this context, Nomura raised its price target for ArcelorMittal (Other OTC: ARCXF.PK - news) from €16 to €17 after the steel company made faster-than-expected net debt reductions. However, it believes that the stock is "fully valued" and maintained a neutral recommendation. Shares of ArcelorMittal were down 4.00% at €16.80 in afternoon trade in Madrid. M.D.
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