BARCLAYS AND MERRILL LYNCH ARE OPTIMISTIC ON U. S. STEEL AND AK STEEL SHARES

Shares of U.S. steel makers traded higher on Tuesday, April 19, after Barclays and Merrill Lynch both selectively decided to raise price targets on some of the companies in the steel industry. One reason cited was rising steel prices. Investors need to keep in mind that some of these ratings come with price targets that are under the current share prices.


United States Steel Corp. (NYSE: X) saw its price target raised to $15 from $7 in the Barclays call. Merrill Lynch raised its price objective to $9 from $1 to reflect a sharp EBITDA recovery from higher selling prices and as valuations remain at a trough.

The smaller AK Steel Holding Corp. (NYSE: AKS) saw its price target raised to $3 from $2 by Barclays, while Merrill Lynch raised its price objective to $2.50 from $1.00. AK Steel recently announced price hikes for carbon steel products and stainless steel products.