kusadasi schreef op 6 december 2016 17:01:
Deutsche Bank Very Bullish on Steel, Raising Price Targets on 5 to Buy Now
By Lee Jackson December 6, 2016 9:55 am EST
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Needless to say, the Trump rally has been something, and the reason seems clear. For the first time in years investors are actually very positive on anticipated growth in the real economy. For years stocks traded up on low interest rates, but actual investor participation was lousy. With bond yields rising, the market sees growth and inflation, and that’s a big positive going forward.
One industry that has benefited big-time is steel. Between the expected infrastructure build-out and what many see as restrictions on Chinese dumping, the stocks have taken off. In a new report, Deutsche Bank raised price targets on five stocks rated Buy, and they said this in their report:
We have rebased our price targets for Steel and Service Centers to reflect $600/steel for 2017 estimates and 2018 estimates versus $500/steel and $550/steel prior. Pricing benefits will mostly flow to the bottom line as US mills face a more favorable cost outlook than global peers. Post-Trump’s win, renewed investor focus on Steels appears to support near-term momentum. As such we raise our price targets an average of 42% and re-iterate Buys.