Barclays Maintains an 'Overweight' on AK Steel (AKS); Surprise Turnaround with $1 EPS Potential
Tweet
Share
E-mailGet Alerts AKS Hot Sheet
Price: $1.55 --0%
Rating Summary:
2 Buy, 19 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 19 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
Barclays maintains an 'Overweight' on AK Steel (NYSE: AKS) price target of $7.00.
Analyst, David Gagliano, said, "With a stretched balance sheet, weak underlying steel-market fundamentals, and an alarmingly high rate of cash burn earlier in 2012, we would argue that AKS has become the most disliked company in an already unfavored sector."
Normally, Gagliano may kick 'um while their down, but in this case, he feels the company will end up being a surprise outperformer in the coming months. With the positive impact from iron ore and met coal prices, Gagliano sees AKS's story turning from cash burn/liquidity concerns to one of positive earnings.
Doing the calculations, Gagliano estimates a dip in commodity prices will provide AKS with a tailwind of EBITDA $150-250M in 2013, which, should translate into incremental EPS of $1.10-1.80 (in 2013), suggesting a total of $0.85-1.55.
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 $5.00 yesterday.
Analyst, David Gagliano, said, "With a stretched balance sheet, weak underlying steel-market fundamentals, and an alarmingly high rate of cash burn earlier in 2012, we would argue that AKS has become the most disliked company in an already unfavored sector."
Normally, Gagliano may kick 'um while their down, but in this case, he feels the company will end up being a surprise outperformer in the coming months. With the positive impact from iron ore and met coal prices, Gagliano sees AKS's story turning from cash burn/liquidity concerns to one of positive earnings.
Doing the calculations, Gagliano estimates a dip in commodity prices will provide AKS with a tailwind of EBITDA $150-250M in 2013, which, should translate into incremental EPS of $1.10-1.80 (in 2013), suggesting a total of $0.85-1.55.
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 $5.00 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
- Cisco rating cut at HSBC as analyst sees a lack of catalysts
- Bernstein SocGen Group Reiterates Outperform Rating on JD.com, Inc (JD), 'very cheaply valued'
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS ViewRelated Entities
Barclays, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
