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

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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 Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: AKS


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