Steel Stocks Jump On Bullish Analyst View (AKS, MT, X)

Steel stocks are seeing a boost today on the weaker dollar and after analysts at JP Morgan raised their estimates and price targets on integrated steel stocks AK Steel (NYSE: AKS), Mittal (NYSE: MT) and U.S. Steel (NYSE: X).

Analyst Michael Gambardella said while the stocks are up significantly they still have "more room to run."

For AK Steel, the firm raised their price target to $34 from $29, raised 2010 EPS estimates to $2.30 from $1.74, and introduced 2011 EPS of $3.65.

For Mittal, the firm raised their price target to $55 from $45, left 2010 EPS unchanged at $3.40 and introduced 2011 EPS of $5.50.

For US steel, the firm raised their price target to $75 from $55, raised 2010 EPS to $4.00 from $3.45, and introduced 2011 EPS of $9.45.

The firm notes that rising raw material costs for steel will lead to higher global steel prices and they said recent price increase will likely stick.

The firm said the recent rebound in steel could be just the beginning and believes we could see hot-rolled sheet prices jump past $750/ton.

Shares of AKS are up 8% today to $25.45, X is up 7% today to $65.23, MT is up 2.4% to $49.19.

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