UPDATE: J.P. Morgan Raises PT on TMS International on Raised 2014E EPS

In a report published Wednesday, J.P. Morgan analyst Michael F. Gambardella reiterated an Overweight rating on TMS International Corp. TMS, and raised the price target from $14.50 to $17.00. In the report, Gambardella noted, “The company's highly variable cost structure and production linked contracts provide steel exposure while mitigating increasingly frequent price volatility. Additionally, TMS continues to retain 95%+ of its customers (largely domestic) upon contract expiration while pursuing growth in multiple regions abroad. In our view, the recent initiation of a $0.40 per share annualized dividend not only provides an attractive 2.8% yield, it signals stability within the operating base and potential for growth abroad despite leverage to an industry known for its history of instability.” TMS International Corp. closed on Tuesday at $14.44.