Among steel names, UBS prefers Nucor and Steel Dynamics to US Steel


In his analysis of the steel sector (SLX), UBS analyst Matt Murphy prefers mini-mill producers Nucor (NUE +0.4%) and Steel Dynamics (STLD +0.5%) with their low cost structures and upside to non-residential construction recovery in 2014, while expressing reservations about US Steel (X -0.5%) and concerns about AK Steel's (AKS +1.6%) cash burn in 2014.

Murphy hopes for significant cost savings at US Steel from Project Carnegie but thinks the transformation will take time.

The analyst also raises his 2014 EPS forecasts on Buy-rated STLD and NUE due to stronger anticipated long-product demand growth.

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Comments (1)
  • omarbradley
    , contributor
    Comments (966) | Send Message
     
    obviously the report by Reuters that India took hundreds of millions of tons of ore off the market should be great news for the steel business. http://reut.rs/1iSliut
    8 Jan 2014, 02:16 AM Reply Like
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