Goldman analysts Sal Tharani and Chelsea Bolton, in an investor report published Monday, upgraded the steel sector to "neutral" from "cautious" citing the likelihood of a "sustainable recovery over the coming years".
"Although volatility associated with this deeply cyclical sector will remain a norm, we believe that investors should start to look beyond near-term headwinds. The supply-demand fundamentals for steel are starting to look more appealing," wrote the Goldman analysts.
AK Steel Holding Corporation
AK Steel Holding Corporation is leading the gains, up 11.1% to $5.11 as of 12:12 p.m. EDT. Goldman Sachs upgraded it to "buy" from "sell", on the belief the company will "see notable margin expansion in 2015 and beyond as it executes its new iron ore strategy".
TheStreet Ratings team rates AK Steel Holding Corp as a Sell with a ratings score of D. The team has this to say about their recommendation:
"We rate AK Steel Holding Corp (AKS) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow, poor profit margins and generally disappointing historical performance in the stock itself."