Goldman Sachs downgrades the steel sector from attractive to neutral, citing concerns that recent attempts by steel producers to push the HRC price to USD 600 may not succeed and prices could even recede over coming months.
As part of the sector call, Goldman removed Steel Dynamics Inc from its conviction buy list but maintained a buy on the stock. The firm lowered their price target from USD 22 to USD 20 on STLD.
Nucor Corporation remains their favorite pick in the sector and raised their price target from USD 53 to USD 55.
Goldman Sachs also raised their price targets on:
1. US Steel from USD 52 to USD 55 (Buy)
2. Allegheny Technologies Inc from USD 28 to USD 35 (Buy)
3. Reliance Steel from USD 36 to USD 42 (Neutral)
4. Olympic Steel from USD 20 to USD 23 (Neutral)
5. Worthington Industries from USD 9.50 to USD 11 (Sell)
(Sourced from www.streetinsider.com)
