Deutsche Bank Upgrades Mechel (MTL) to Buy; Turning Against the Tide

Deutsche Bank upgraded Mechel (NYSE: MTL) to Buy with a price target of $16.00.

Deutsche analyst says, "The negative macro backdrop disfavors cyclical exposure, but the current share price levels already discount rather extreme fundamental developments. We estimate that Mechel's current valuation implies c20% downside to our FY12 EBITDA forecast, and spot steel/raw material prices in perpetuity, which we view as overdone. Valuation argument, improvements in cash management, greater focus on de-leveraging and postponed dilution risks all bode well for the name."

For more ratings news on Mechel click here and for the rating history of Mechel click here.

Shares of Mechel closed at $11.10 yesterday.

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