AK Steel (AKS)

[Alyssa]

11:02 AM ET 11/21/17 | Dow Jones AKS - OUTPERFORM
4.89 5.72%

Investors should take another look at AK Steel after they "over-penalized" the steelmaker for a weak 3Q report and its financing plans for the recent purchase of Precision Partners, Credit Suisse says. The firm upgrades AK to outperform from neutral with a $7 price target, predicting the company will have better pricing power next year in the high-value markets for automotive stainless and steel for electrical transformers where 85% of its volume is concentrated. "We believe that AK generally underpriced its automotive contracts in 2017 relative to competitors ... in an effort to buy share by leveraging its low-cost coking coal contracts," Credit Suisse says. AK's shares have lost more than 50% since the start of the year, including a 22% plunge in just the past month. AK is up 6% at $4.91. ([e-mail]; @bob_tita)

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November 21, 2017 11:02 ET (16:02 GMT)