NEW YORK (TheStreet) -- Shares of AK Steel (AKS) - Get Report were advancing in mid-afternoon trading on Friday after steel producers yesterday asked the Commerce Department to investigate whether China is avoiding U.S. important tariffs by routing shipments through Vietnam.
"We view the filing as a significant positive development for the US value add sheet market as Vietnam has been by far the largest source of offsetting volume post the positive trade case outcomes," Credit Suisse said in a note released earlier today.
"In our view, if value-add sheet from Vietnam were to be restricted from entering the US, liquidity in the SE Asian market would be significantly impaired and the US market would tighten," the firm added.
The action is consequently a positive catalyst for steel stocks, since it challenges the idea that domestic steel prices driven higher by trade actions are short-lived, Credit Suisse noted.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
AK Steel's weaknesses include its poor profit margins.
You can view the full analysis from the report here: AKS
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.