UPDATE: Deutsche Bank Upgrades AK Steel Holding Corporation

AK Steel Holding Corporation AKS was upgraded from Hold to Buy by Deutsche Bank.

The firm’s research report indicated a Buy was triggered as a result of AK Steel’s valuation in the wake of a -22 percent stock correction since mid-September.

The report noted that “AKS is the main beneficiary...of lower iron ore prices and has just completed its Severstal Dearborn acquisition which should improve scale/operational flexibility. Further, its Magnetation pellet plant...has started operations 3 months ahead of schedule and is expected to provide iron ore pellets at a discount to market price.”

Deutsche Bank analysts led by Grant Sporre and Xiao Fu wrote in its Septmeber 30 Commodities Quarterly “that the property sector will be a positive contributor to steel demand for a number of years. Continuing urbanization as well a replacement demand (due to inferior build quality) and upgrading (due to larger families) will drive growth.”

AK Steel Holding Corporation traded at $7.20 Thursday morning, down 0.69 percent.