- Goldman Sachs (NYSE:GS) initiates bullish coverage on the metals and mining sector, citing very strong overall fundamentals in the North American mining and metals markets, but emphasizes selectivity for investors.
- "Commodity prices are high, the supply side for metals and bulks looks more rational than it has been in years, [metals and mining] balance sheets are healthy (or at least healthier), and consumption has momentum from coordinated global growth, even as China gradually slows," Goldman writes.
- The firm sees copper as the most attractive metal for Goldman at the moment, and Freeport McMoRan's (FCX +2.2%) copper exposure merits a Buy rating and $23 price target.
- Goldman also awards Buy ratings to Nucor (NUE -1.6%), Steel Dynamics (STLD -0.5%), Schnitzer Steel (SCHN +0.8%) and Constellium (CSTM +0.2%).
- U.S. Steel (X -1.3%), AK Steel (AKS -2.8%), Alcoa (AA +0.1%), Arconic (ARNC +0.3%), Kaiser Aluminum (KALU -1.9%), Teck Resources (TECK +0.1%), Cleveland-Cliffs (CLF -2.5%) and Reliance Steel (RS -1.4%) are initiated at Neutral, while Allegheny Tech (ATI -2.8%) and Commercial Metals (CMC -1.4%) are slapped with Sell ratings.
- Now read: Teck Resources' Strong Credit Metrics Backed By Attractive Source Of Funding
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