NEW YORK (TheStreet) -- AK Steel Holding (AKS) shares are up 2.5% to $9.44 on Tuesday after analysts at Cowen (COWN) increased its price target to $11 from $9 while reiterating its "market perform" rating.
Market Realist analyst Mark O'Hara recently wrote a note detailing that he believes AK Steel is set to experience major growth since the automotive sector, which accounts for the majority of AK Steel's revenue, has been growing at a steady rate that is expected to continue into the near term.
However, O'Hara also noted that such revenue stream concentration could prove to be costly if there is an unexpected downturn in the automotive industry.
TheStreet Ratings team rates AK STEEL HOLDING CORP as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate AK STEEL HOLDING CORP (AKS) a SELL. This is driven by a few notable 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 and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows: