🔮 Better than the Oracle? Our Fair Value found this +42% bagger 5 months before Buffett bought itRead More

Steel stocks upgraded at Longbow on likely government action

Published 06/19/2017, 10:22 AM
© Reuters.  Steel stocks upgraded at Longbow on likely government action
STLD
-
AKS_old
-
NUE
-
X
-
SLX
-
  • U.S. Steel (X +4.2%), AK Steel (AKS +4%), Nucor (NUE +3.2%) and Steel Dynamics (STLD +2.2%) are all upgraded to Buy from Neutral at Longbow, citing strong evidence of an improved steel distributor market.
  • After speaking with contacts in the sector, the firm sees hot rolled coil prices rising by $50-$60/ton, driven by a recent modest uptick in downstream steel orders, inventory adjustments and a large pullback in the number of steel import offers.
  • Longbow is more confident of a positive Section 232 outcome, and says some buyers expect HRC prices to rise to $700-$750/ton, up from the current $590-$600, following expected government action in the form of protection from imports.
  • Longbow's price targets for the stocks: NUE $66, STLD $40, X $30, AKS $10.
  • ETF: SLX
  • Now read: The Love For Tech Stocks - Cramer's Mad Money (6/15/17)


Original article

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.