Goldman Sachs Kicking Steel While It's Down (AKS, STLD, TX, CMC)
It is a bit surprising when you see a firm like Goldman Sachs downgrade many key steel stocks after their shares have fallen by so much. That is what we are seeing this morning. Many steel stocks are down more than 75% from their recent year highs. It sees lower steel and scrap prices on deteriorated demand in the coming months. Below is the firm’s downgrade list, although Commercial Metals (NYSE: CMC) was actually upgraded.
AK Steel (AKS) Cut to Sell from Neutral. AK Steel closed at $14.17 yesterday and it is down sharply from a high of $73.07.
Steel Dynamics (STLD) Cut to Neutral from Buy. Steel Dynamics closed at $9.51 yesterday and it is down from a high of $40.92.
Ternium S.A. (TX) Cut to Neutral from Buy. Ternium closed at $9.98 and is down from a 52-week high of $45.99.
Goldman Sachs did issue one upgrade in the sector. Commercial Metals (CMC) was raised to Buy from Neutral. This one is indicated higher after closing at $10.58 yesterday. It is down about 70% from its $39.80 52-week high.
Jon C. Ogg
October 9, 2008