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AK Steel upgraded at J.P. Morgan on expectations of higher steel prices

Published 12/07/2017, 11:51 AM
© Reuters.  AK Steel upgraded at J.P. Morgan on expectations of higher steel prices
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  • AK Steel (AKS +5.3%) is higher after J.P. Morgan upgrades shares to Overweight from Neutral with a $7 price target, hiked from $6, saying the Department of Commerce's ruling against China redirecting steel to Vietnam will push steel prices higher in the U.S.
  • "The retroactive nature of the duties will make importers of record in the U.S. more reluctant to buy "cheap" imports in the future and should support higher steel prices in the U.S.," JPM analyst Michael Gambardella writes.
  • Given the outlook for higher steep prices, JPM raises its 2018 EPS estimate to $1.00 from $0.83 and says earnings should increase sequentially throughout 2018 from a base of a $0.13/share loss in Q4 2017 due to higher maintenance and input costs, lower shipments and lower prices.
  • Now read: Excellon Resources Firing On All Cylinders


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