Dahlman Rose on Metals & Mining: Downgrading Steel Sector as Global Pricing Held Hostage (AKS, MT, NUE, STLD, X)
Tweet Send to a FriendGet Alerts AKS Hot Sheet
Price: $3.54 +2.61%
Rating Summary:
5 Buy, 10 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Rating Summary:
5 Buy, 10 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Trade AKS Now!
Dahlman Rose on Metals & Mining: Downgrading Steel Sector as Global Pricing Held Hostage
Analyst, Anthony B. Rizzuto, said, "We are lowering our ratings on the domestic steel producers, as we believe the next move in steel prices will be lower. Recent domestic price increases have not been matched internationally, potentially inviting increased imports later this year and placing a de facto ceiling on domestic prices."
Rizzuto suggested that the July bottoming (in July) for steel stocks and then subsequent rally is justified, however, now industry fundamentals point to a move lower. Imports are now looking more attractive that domestic servicers. He suggests scrap prices will fall along with continued weakness in iron ore prices.
Dahlman downgrades AK Steel (NYSE: AKS) from Hold to Sell. PT $5.
ArcelorMittal (NYSE: MT), Nucor (NYSE: NUE), Steel Dynamics (Nasdaq: STLD), U.S. Steel (NYSE: X) all lowered from Buy to Hold
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
Analyst, Anthony B. Rizzuto, said, "We are lowering our ratings on the domestic steel producers, as we believe the next move in steel prices will be lower. Recent domestic price increases have not been matched internationally, potentially inviting increased imports later this year and placing a de facto ceiling on domestic prices."
Rizzuto suggested that the July bottoming (in July) for steel stocks and then subsequent rally is justified, however, now industry fundamentals point to a move lower. Imports are now looking more attractive that domestic servicers. He suggests scrap prices will fall along with continued weakness in iron ore prices.
Dahlman downgrades AK Steel (NYSE: AKS) from Hold to Sell. PT $5.
ArcelorMittal (NYSE: MT), Nucor (NYSE: NUE), Steel Dynamics (Nasdaq: STLD), U.S. Steel (NYSE: X) all lowered from Buy to Hold
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
You May Also Be Interested In
- Morgan Stanley Maintains Bullish Stance on Walter Energy (WLT)
- Wells Fargo Starts Quintiles (Q) at Outperform
- Terex (TEX) Suffers from Weakness in Europe; Read-Through For Manitowoc (MTW)
Create E-mail Alert Related Categories
Analyst Comments, Commodities, DowngradesRelated Entities
Raising Prices
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
