Barclays Maintains an 'Overweight' on AK Steel (AKS); Surprise Turnaround with $1 EPS Potential
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Price: $3.36 +1.82%
Rating Summary:
5 Buy, 10 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
5 Buy, 10 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade AKS Now!
Barclays maintains an 'Overweight' on AK Steel (NYSE: AKS) price target of $7.00.
Analyst, David Gagliano, said, "With a stretched balance sheet, weak underlying steel-market fundamentals, and an alarmingly high rate of cash burn earlier in 2012, we would argue that AKS has become the most disliked company in an already unfavored sector."
Normally, Gagliano may kick 'um while their down, but in this case, he feels the company will end up being a surprise outperformer in the coming months. With the positive impact from iron ore and met coal prices, Gagliano sees AKS's story turning from cash burn/liquidity concerns to one of positive earnings.
Doing the calculations, Gagliano estimates a dip in commodity prices will provide AKS with a tailwind of EBITDA $150-250M in 2013, which, should translate into incremental EPS of $1.10-1.80 (in 2013), suggesting a total of $0.85-1.55.
For an analyst ratings summary and ratings history on AK Steel click here. For more ratings news on AK Steel click here.
Shares of AK Steel closed at $5.00 yesterday, with a 52 week range of $4.44-$10.33.
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Analyst, David Gagliano, said, "With a stretched balance sheet, weak underlying steel-market fundamentals, and an alarmingly high rate of cash burn earlier in 2012, we would argue that AKS has become the most disliked company in an already unfavored sector."
Normally, Gagliano may kick 'um while their down, but in this case, he feels the company will end up being a surprise outperformer in the coming months. With the positive impact from iron ore and met coal prices, Gagliano sees AKS's story turning from cash burn/liquidity concerns to one of positive earnings.
Doing the calculations, Gagliano estimates a dip in commodity prices will provide AKS with a tailwind of EBITDA $150-250M in 2013, which, should translate into incremental EPS of $1.10-1.80 (in 2013), suggesting a total of $0.85-1.55.
For an analyst ratings summary and ratings history on AK Steel click here. For more ratings news on AK Steel click here.
Shares of AK Steel closed at $5.00 yesterday, with a 52 week range of $4.44-$10.33.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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