KeyBanc Downgrades AK Steel (AKS) to Hold; Reduced Macro Visibility, Weaker Spread Recovery Unfolding
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Price: $3.66 +3.98%
Rating Summary:
5 Buy, 10 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 0 | Down: 1 | New: 6
Rating Summary:
5 Buy, 10 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 0 | Down: 1 | New: 6
Trade AKS Now!
KeyBanc downgraded AK Steel (NYSE: AKS) from Buy to Hold.
KeyBanc analyst says, "Companies most in need of a metal spread catalyst, possessing significant debt leverage, and operators without meaningful supply chain integration will likely remain in the penalty box until more constructive supply-demand fundamentals prevail for the sector. In that vein, we reducing our ratings on AK Steel and Metals USA (NYSE: MUSA) to HOLD from BUY, given subdued near-term metal spreads, lower than normal transparency, and high leverage ratios. We also reiterate our HOLD rating on Olympic Steel, Inc. (NASDAQ: ZEUS) via its recent re-leveraging and accompanying higher financial risk profile. We believe shares of Nucor Corporation (NYSE: NUE) will be a neutral safe haven for investors (dividend yield, rock solid balance sheet) over the near term, but we do not see meaningful near-term catalysts to drive sustained equity appreciation in shares via increased likelihood of further miasma in construction markets."
For more ratings news on AK Steel click here and for the rating history of AK Steel click here.
Shares of AK Steel closed at $8.97 yesterday, with a 52 week range of $7.70-$17.88.
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KeyBanc analyst says, "Companies most in need of a metal spread catalyst, possessing significant debt leverage, and operators without meaningful supply chain integration will likely remain in the penalty box until more constructive supply-demand fundamentals prevail for the sector. In that vein, we reducing our ratings on AK Steel and Metals USA (NYSE: MUSA) to HOLD from BUY, given subdued near-term metal spreads, lower than normal transparency, and high leverage ratios. We also reiterate our HOLD rating on Olympic Steel, Inc. (NASDAQ: ZEUS) via its recent re-leveraging and accompanying higher financial risk profile. We believe shares of Nucor Corporation (NYSE: NUE) will be a neutral safe haven for investors (dividend yield, rock solid balance sheet) over the near term, but we do not see meaningful near-term catalysts to drive sustained equity appreciation in shares via increased likelihood of further miasma in construction markets."
For more ratings news on AK Steel click here and for the rating history of AK Steel click here.
Shares of AK Steel closed at $8.97 yesterday, with a 52 week range of $7.70-$17.88.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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