UPDATE: Bank of America Upgrades AK Steel on Better Pension Position into 2014E

In a report published Tuesday, Bank of America analyst Timna Tanners upgraded the rating on

from Underperform to Neutral, and raised the price target from $4.00 to $6.00. In the report, Bank of America noted, “We upgrade AKS to Neutral after adjusting 2013E underfunded legacy liabilities for a better equity return and higher discount rate. We include such liabilities in our valuation as debt, and into 2014E this drag on valuation lessens some $200M. The moves have no cash flow or income statement benefit, but we like its ‘self-help' strategy via an iron ore mining JV. We stop short of a Buy rating amid persistent challenges from a high-cost position across carbon, stainless, and electrical sheet output and lingering troubles related to Middletown's blast furnace outage.” AK Steel closed on Monday at $5.57.