Analyst Moves, Dampened Outlook Hit Steel Sector (SLX) (X) (AKS)

June 18, 2012 11:38 AM EDT
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Steelers are feeling another pinch Monday following analyst moves and a reduced outlook from one of the more notable companies in the sector.

Earlier, Jefferies said its trimming numbers on many in the steel sector. In particular, the firm cut its price target on U.S. Steel (NYSE: X) from $25 to $22 while maintaining a Hold rating, citing industry pricing and global demand on the move. U.S. Steel shares are down about 4 percent for the session.

AK Steel Holding Corp. (NYSE: AKS) cut its outlook for the second quarter this morning. AK Steel cited slightly better shipments and flat pricing from the first quarter, along with expectations of recording a non-cash charge in the current quarter "to recognize a valuation allowance against some or all of its remaining deferred tax assets." Shares of AK Steel are down over 5 percent Monday. Jefferies also adjusted expectations for AK Steel.

As a whole, sentiment for a rebound in the segment has tempered. AK Steel shares are well off the annual high at $16.75 hit last summer; shares U.S. Steel are down from $47.33 attained last July. Both stocks have headed lower since the start of 2012, with little in the way of good news in the sector.

The Market Vectors Steel ETF (NYSE: SLX) is down about 1 percent in morning trading.

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