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Shares of U.S. Steel, Steel Dynamics on the rise

作者:25 發(fā)布時(shí)間:2010-05-14 文字大?。?span id="da">【大】【中】【小】

Shares of steelmakers Steel Dynamics and U.S. Steel rose on Thursday after analysts gave positive outlooks for improved production and prices.

Steel Dynamics Inc rose 6 percent to $16.28 in midday trading on the Nasdaq as Longbow Research analyst Luke Folta raised its investment rating to "buy" from "neutral" and set a share price target of $20.

"Our positive outlook on the shares is driven mostly by a more favorable valuation and more bullish expectations for ferrous scrap and carbon steel pricing," Folta wrote in a research note.

He said Steel Dynamics had the highest exposure to strong flat-rolled steel markets and low exposure to construction-related markets,

Shares of U.S. Steel Corp rose 4.3 percent to $57.41 on the New York Stock Exchange after Goldman Sachs added the company to its "Conviction Buy" list.

Analyst Sal Tharani cited expectations of higher steel production in 2010 and improved prices. He said U.S. Steel's earnings would benefit from reduced fixed costs due to rising utilization rates and the improving market for tubular steel in the oil and gas industry.

The Dow Jones Iron and Steel index .DJUSST was up 1.5 percent.

(Reporting by Steve James; editing by John Wallace)

Sourced from www.reuters.com