Rosenblatt Starts AK Steel (AKS) at Buy

August 22, 2016 9:05 AM EDT
Get Alerts AKS Hot Sheet
Price: $1.55 --0%

Rating Summary:
    2 Buy, 20 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 12 | Down: 20 | New: 8
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Rosenblatt initiates coverage on AK Steel (NYSE: AKS) with a Buy rating and a price target of $6.00.

Analyst Chris Olin commented, "Consistent with the recent positive outlook issued on the steel industry, we believe AKS is undervalued in relation to the 2017 earnings potential. Our independent survey work in the carbon sheet markets previously indicated some near-term weakness in downstream orders and mill pricing. However, we believe the late summer correction was driven by seasonal factors and channel uncertainty rather than a complete breakdown in industry fundamentals. The core catalysts remain visible for the main U.S. producers: (1) slow improvements in underlying steel consumption; (2) a reduced number of low-priced import offers following many favorable trade case decisions; (3) better managed steel capacity and controlled production in North America; and (4) tight inventory holding positions. This should provide a higher price floor for the flat rolled product over the next 2-3 years."

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 $4.67 yesterday.

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