Jefferies Weighs In On Steel Companies

In a research note released Monday, Jefferies analyst Luke Folta increased his price target on AK Steel (NYSE: AKS) from $6.50 to $7.00 and rated the company a Hold. Additionally, he decreased the price target on Nucor (NYSE: NUE) from $59 to $58 and is rated a Buy.

The changes were primarily done on the basis of accelerated steel demand in the second quarter; demand was weak in the first quarter. The analyst is expecting demand to continue to increase.

For the current quarter, earnings per share estimates went from $0.07 to a loss of $0.04. For the current year, estimates went up $0.04 to a loss of $0.21. The largest gain was made in estimates for next year going from $0.42 to $0.72.

Shares of the company closed up nearly three percent at $7.66.

On Nucor, current quarter estimates were decreased from $0.60 to $0.36. For the current year, estimates were decreased from $2.45 to 1.85. For next year estimates were decreased to $4.00 from $4.25.

Shares of the company closed down less than one percent at $50.16.