United States Steel Corp. shares increased Tuesday after a Deutsche Bank analyst upgraded its stock to "buy" from "hold", saying the sector is supported by economic growth and restocking, major newswires have reported.
On the other hand, analyst David Martin decreased AK Steel Corp's mark to "hold" from "buy," citing its lower margin potential compared to its peers.
In his research report on the US steel sector issued on Tuesday, January 19, Mr. Martin argued that the economic recovery seems to be real and that demand for steel products will be boosted. He added that he expects higher prices and shares in 2010 and that North American output will rise 25 percent with restocking benefits.
Shares of US Steel rose to $65.07 late Tuesday and closed at $62.04 in the US after the news. Martin's target price for the stock is $77.
The Deutsche Bank analyst changed his price target on AK Steel stock to $24 per share, with the share price closing at $23.66 on Tuesday.