AK Steel Upgraded to “Buy” at Goldman Sachs (AKS)

By
A A A
Share |

Steel producer AK Steel Holding Corporation ( AKS ) caught a big upgrade on Monday from analysts Goldman Sachs.

The firm boosted its rating on AKS to "Buy" from "Neutral" with a $17 price target. That target would represent a 27% upside to the stock's Tuesday closing price of $13.34.

Goldman cited declining iron ore prices in the spot market as a factor that will lead to lower-priced contracts in future quarters. This phenomenon will benefit company's like AKS, which are nonvertically integrated.


AK Steel shares rose 29 cents, or +2.2%, in premarket trading Wednesday.

The Bottom Line
We had removed shares of AKS from our recommended list back on July 3, 2008, when the stock was trading at $52.79. The company has a 1.50% dividend yield, based on last night's closing stock price of $13.34. The stock has technical support in the $12 price area. If the shares can firm up, we see overhead resistance around the $16 price level. We would remain on the sidelines for now.

AK Steel Holding Corporation ( AKS ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Created by Dividend.com


This article appears in: Investing , Stocks

Referenced Stocks: AKS

Dividend.com

Dividend.com

More from Dividend.com:

Related Videos

Stocks

Referenced

74%

Most Active by Volume

100,376,898
  • $17.62 ▲ 0.51%
83,231,837
  • $25.62 ▲ 1.91%
75,739,329
  • $111.78 ▼ 0.77%
65,297,937
  • $36.37 ▼ 1.76%
59,053,093
  • $47.66 ▲ 0.29%
53,482,350
  • $2.59 ▼ 0.38%
51,504,284
  • $7.34 ▲ 2.37%
51,434,656
  • $8.14 ▲ 6.96%
As of 12/19/2014, 04:15 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com