Goldman Sachs on Monday upgraded the steel sector to “Attractive” from “Neutral” asserting that rising steel scrap prices combined with underperformance of the group compared to other cyclicals spells opportunity.
Goldman, which placed U.S. Steel (X) on its “conviction list” and recommends buying shares of Steel Dynamics (STLD), AK Steel Holding (AKS) and Nucor (NUE), argues that steel and scrap prices in the U.S. have bottomed. It also said inventories remain low.
The Market Vectors Steel ETF (SLX) was up 4.4% to a recent price of $58.15.
No comments:
Post a Comment