Steel stocks' price targets upped at J.P. Morgan as higher U.S. prices seen

|By:, SA News Editor

Noting that ArcelorMittal (MT +1.8%) has raised its hot-rolled sheet pricing by $40/ton to $600/ton, J.P. Morgan's Michael Gambardella raises his price targets on several stocks in the U.S. steel industry (SLX +1.5%).

He increases his target for AK Steel (AKS +3.1%) to $11 from $8.50, on Nucor (NUE +0.6%) to $70 from $59, on Steel Dynamics (STLD +0.9%) to $41 from $31, on U.S. Steel (X +3.3%) to $37 from $29, and on Cliffs Natural Resources (CLF +1.2%) to $10 from $7, while keeping Overweight ratings on all five stocks.

Gambardella says supply cuts in the U.S. from both capacity curtailments and lower imports should support higher U.S. steel prices, and thinks the Trump administration's impact on trade could be "much quicker and more meaningful" than its infrastructure plans.