Credit Suisse Starts AK Steel (AKS) at Underperform

Credit Suisse initiates coverage on AK Steel (NYSE: AKS) with a Underperform rating and a price target of $2.00.

Analyst Curt Woodworth commented, "We believe AKS is facing an uphill battle over the next several years owing to structural challenges for US integrated producers as well as AK's sizeable debt ($2.3bn net debt) and legacy liabilities ($1.1bn). We believe AK's cost structure is not competitive for commodity sheet products in the current environment and look for Ashland to remain idle through at least Q2-16. The strong recovery in iron ore and scrap prices further add to cost headwinds."

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 $3.69 yesterday.

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