Jefferies cuts Aperam to 'hold' seeing 'better risk/reward' at peers

** Jefferies downgrades European stainless steel producer Aperam APAM to 'hold' from 'buy' and lowers its PT to EUR 30, citing a weak EU market and less US upside

** Broker sees "near-term upside as limited in the absence of earnings momentum" and shares trading above 5-year average

** Weaker-than-expected EU stainless markets and less exposure to recent US price hike than competitors mean "better relative risk/reward at peers," says Jefferies

** Broker sees EU stainless & electrical steel unit EBITDA close to breakeven in Q2, expects no material change to industry before late 2025 onwards

** Despite the downgrade, Jefferies values the company's diversified operations and sees an appealing dividend yield of around 8%, alongside positive momentum in Brazil