AK Steel Gains After Upgrade At Macquarie

Shares of

closed up 7.3 percent to $7.07 on Wednesday after Macquarie upgraded the stock from Neutral to Outperform and raised the price target from $6 to $11. Analyst Aldo Mazzaferro expects the company to "post much stronger EPS this year and next,” as "pricing has improved while supply tightens and demand improves.” The company should “continue to see a good mix of high value added products in its sales as volumes remain subdued, while also seeing better pricing on high and lower end products,” said Mazzaferro. AK Steel earnings per share could get a surprise boost from “a very low tax rate accrual,” the report noted.