Deutsche Bank Comments On AK Steel Holding Ahead Of Next Week’s Earnings

In a report issued today, Deutsche Bank analyst Jorge Beristain maintained a Buy rating on AK Steel Holding (NYSE:AKS) with a $10 price target, which represents a potential upside of 149% from where the stock is currently trading.

The report comes ahead of the company’s fourth-quarter results and business outlook, which will be reported on Tuesday, January 27, 2015.

Beristain noted, “We expect AK Steel to report 4Q14 adjusted diluted EPS of 8c compared to 12c in 3Q14, as benefit of lower raw material costs and higher volumes from Dearborn acquisition is more-than-offset by lower steel prices, $31m (~15c/sh) planned outage costs at Ashland and a higher share count (+24%). DBe adj. EPS compares to guidance of 5-10c and Thomson One consensus of 7c (up 2c in past month).”

The analyst added, “On December 4, 2014, AKS completed the Ashland blast furnace hearth reline and other maintenance work a day ahead of schedule (27 days) and on budget ($50m). Since then the furnace has returned to full operating capacity and better positions the company for 2015.”

AK Steel Holding Corporation, through its subsidiary, AK Steel Corporation, produces flat-rolled carbon, stainless and electrical steel, and tubular products in the United States and internationally.


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