Credit Suisse Upgrades AK Steel (AKS) to Outperform

Credit Suisse upgraded AK Steel (NYSE: AKS) from Underperform to Outperform with a price target of $7.00 (from $3.50) after increasing their U.S. steel price deck.

Analyst Curt Woodworth commented, "We remain very bullish on the US steel industry and our new supply / demand model for the US flat rolled market indicates continued deficits for value add sheet into 3Q-16, supporting prices well above fair value levels. We have significantly increased our spot and contract price deck and have upgraded our rating on AK Steel to Outperform. While spot sheet prices are likely to begin to moderate starting in August, we see structurally higher prices for sheet relative to scrap / global arbitrage than historical levels owing to multiple factors. We have increased target prices on all stocks in our coverage universe except CMC owing to rebar spread risks. We believe the market is underestimating structural change in US sheet market."

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 $4.58 yesterday.

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