Nomura Securities Upgrades AK Steel (AKS) to Buy

Nomura Securities upgraded AK Steel (NYSE: AKS) from Neutral to Buy with a price target of $10.00 (from $7.00) citing $2.00 of EPS power by 2016.

Analyst Curt Woodworth comments, " AK Steel should experience a material increase in EBITDA and FCF in 2015 owing to significant raw material cost down, accretion from the Dearborn acquisition, improvements in electrical steel markets, higher automotive margins, elimination of substantial weather and outage costs from 2014, and positive operating leverage. We now forecast 2015 EBITDA of $795 mm relative to the consensus estimate of $697mm and FCF of $1.95/share. We forecast 2016 EBITDA to reach $856mm and FCF of $2.57/share owing to additional synergies at Dearborn, further declines in ore prices, and a full-year of contribution from Magnetation."

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 $5.76 yesterday.

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