Wells Fargo Downgrades AK Steel (AKS) to Market Perform

Wells Fargo downgraded AK Steel (NYSE: AKS) from Outperform to Market Perform with a price target of $3-$4 (from $4-$5). Analyst Sam Dubinsky sees a bounce in steel names, but thinks AK Steel is likely to miss out.

"We are downgrading AKS to Market Perform due to a lack of positive catalysts as its blast furnace outage likely prevents it from capitalizing on a turn in industry fundamentals. US Steel also has less room for upside potential in our view as it does not benefit from raw material cost reductions in the U.S. due to its own internal iron ore mining; we also expect soft prices for European and OCTG operations," said Dubinsky.

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 $3.04 yesterday.

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