UBS North American Metals Update: Marking Steel Prices To Market (down): Steel Stocks Attractive Near-Term
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Rating Summary:
6 Buy, 10 Hold, 4 Sell
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Today's Overall Ratings:
Up: 5 | Down: 9 | New: 7
Rating Summary:
6 Buy, 10 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 5 | Down: 9 | New: 7
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UBS North American Metals Update: Marking steel prices to market (down): Priced in following stock weakness
Analyst, Shneur Z. Gershuni, said, "We reduce our H2 2012 and 2013 HRC estimates in conjunction with our quarterly commodity review. Notably, we lower our 2013 HRC steel forecast to $700/t from $750/t as raw material prices have decreased, imports have weighed on domestic prices, and utilization has softened. That said, we believe this change is more than priced into the stocks, as our steel coverage weakened 18% in 2Q, the time of our last price update."
UBS lowers estimates on Cliff Natural Resources (NYSE: CLF) and cuts price target from $87 to $83. (Buy-rated)
AK Steel (NYSE: AKS), price target lowered from $6 to $5. (Neutral-rated)
Nucor (NYSE: NUE), PT lowered from $45.50 to $43. (Buy-rated)
U.S. Steel (NYSE: X), PT lowered from $43 to $38 (Buy-rated)
In conclusion, Gershuni, said, "Steel stocks have attractive near-term potential, in our view. We believe prices reached a bottom around $595/ton and freshly announced price hikes are likely to stick."
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Analyst, Shneur Z. Gershuni, said, "We reduce our H2 2012 and 2013 HRC estimates in conjunction with our quarterly commodity review. Notably, we lower our 2013 HRC steel forecast to $700/t from $750/t as raw material prices have decreased, imports have weighed on domestic prices, and utilization has softened. That said, we believe this change is more than priced into the stocks, as our steel coverage weakened 18% in 2Q, the time of our last price update."
UBS lowers estimates on Cliff Natural Resources (NYSE: CLF) and cuts price target from $87 to $83. (Buy-rated)
AK Steel (NYSE: AKS), price target lowered from $6 to $5. (Neutral-rated)
Nucor (NYSE: NUE), PT lowered from $45.50 to $43. (Buy-rated)
U.S. Steel (NYSE: X), PT lowered from $43 to $38 (Buy-rated)
In conclusion, Gershuni, said, "Steel stocks have attractive near-term potential, in our view. We believe prices reached a bottom around $595/ton and freshly announced price hikes are likely to stick."
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