UPDATE: UBS Upgrades AK Steel to Neutral; Liquidity Concerns Remedied
UBS raised its rating on AK Steel (NYSE: AKS) from Sell to Neutral and raised its price target from $3.50 to $4.
UBS noted, "We are upgrading AKS to Neutral following a recent 30% price correction and steps taken recently which have pushed out our liquidity concerns. Looking ahead we expect a positive environment for steel related companies as the last two rounds of steel hikes appear to have “stuck”, lower raw materials costs are expected to help margins longer term and the upcoming settlement for met coal is likely to be lower than our current estimate of $200/t. Additionally the group has been weak due to fiscal cliff concerns and should benefit from a resolution."
AK Steel closed at $3.83 on Friday.
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