UPDATE: Goldman Sachs Upgrades AK Steel Holding as New Iron Ore Strategy is Not Priced In

In a report published Monday, Goldman Sachs analyst Sal Tharani upgraded the rating on AK Steel Holding AKS from Sell to Buy, and raised the price target from $3.00 to $6.00. In the report, Goldman Sachs noted, “We upgrade AKS to Buy from Sell, as we expect the stock to see significant multiple expansion in coming months as investors shift focus to longer term earnings potential. We raise our six-month P/E-, EV/EBITDA-, and M&A-based price target to $6 from $3, implying 36% upside, as we update our methodology to include a 50% weighting on normalized (mid-cycle) estimates and a 50% weighing on 2014 estimates. We believe AKS is currently at a bottom, and its equity and debt offering in November 2012 removed any near term liquidity risk.” AK Steel Holding closed on Friday at $4.42.