Analyst Note: AK Steel Holding shares upgraded
NEW YORK — An analyst Friday upgraded AK Steel Holding Corp. shares, which recently have declined to the point where they offer an attractive value for investors.
Deutsche Bank analyst David S. Martin upgraded shares of the West Chester, Ohio, company to “Buy” from “Hold.”
Shares have fallen 7.1 percent in the last month, compared with other steel producers whose stocks have climbed and compared with the S&P 500 index, which has risen 4.1 percent in the last four weeks, he wrote in a client note.
Further, the company could end up being purchased next year, said the analyst.
“We also view AK Steel’s value-added business mix as positive and we see it as an attractive merger and acquisition target given its size, corporate structure and market position, which we believe could garner more attention into 2010,” he said.
Martin, who increased his price target to $22.50 from $19.50, also increased his estimate of 2009 per share results to a loss of 86 cents, up from his earlier projected loss of 91 cents per share.
Finally, he increased his estimate for next year to a profit of $1.13 per share from a profit of 86 cents per share.
Analysts surveyed by Thomson Reuters expect, on average, AK Steel will lose 87 cents per share this year and earn $1.18 per share next year.
In afternoon trading the stock rose 19 cents to $19.63.
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