Dahlman Rose Raises Price Target on AK Steel (AKS), Notes Uncertainty Remains Short-Term

Dahlman Rose is reiterating its Buy rating on shares of AK Steel (NYSE: AKS) and is raising its price target from $12 to $13 following the release of its Q4 results.

An earnings loss of $0.26 per share for the quarter was much better than the Street's and firm's loss expectations of $0.39 and $0.37. The firm highlights the upside was driven by higher shipment volumes and selling price.

An analyst at Dahlman Rose comments, "We believe that AK's investments in Magnetation and AK Coal Resources, combined with the increased pricing pass through mechanisms embedded in its contract business, portend an easing of margin pressures in the future. However, until these initiatives prove to be effective, we remain cautiously optimistic on their benefits. We will continue to monitor the impacts of AK Steel's cash pension obligations, labor agreement situation, and recently-announced Department of Energy standard amendments."

For Q1 and FY12, the firm forecasts earnings of $0.10 and $0.70 per share.

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 $9.63 yesterday.

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