Wells Fargo Starts AK Steel (AKS) at Market Perform; Turnaround Story's A Bit Distant

Wells Fargo initiates coverage on AK Steel (NYSE: AKS) with a Market Perform. PT range $7-$8.00.

Wells analyst says, "We expect fundamentals to remain difficult through 2012 and prefer peers with lower cost structures and cleaner balance sheets. AK's new
vertical integration strategy is a game changer, but in our view, cost improvements are a tad distant to get excited about early given current macro challenges. Our $7.00-8.00 valuation range is based on a multiple of 10-11x our 2012 EPS estimate of $0.71."

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 $7.15 yesterday.

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