Deutsche Bank revises steel outlook

Dec 22, 2008 | 01:40 PM | Scott Robertson

Deutsche Bank Equity Research analyst David S. Martin is revising forecasts for steel for the fourth quarter of this year and for 2009 downward based on the belief that global GDP will expand at a significantly slower rate and steel will be in surplus for much of next year.

Martin, in a research report released Monday, said Deutsche Bank's 2009 forecasts have been lowered an average of 44 percent, reflecting reduced volume and steel price assumptions for all nine of the steel companies it covers. Deutsche Bank's estimates now are 40 percent below consensus for '09.

Martin said the firm maintains a "cautious" outlook on steel for '09 and adjusted ratings on two U.S. steelmakers to reflect that view. U.S. Steel Corp., Pittsburgh, has seen its rating adjusted to "Hold" with a price target of $40 while the rating of Nucor Corp., Charlotte, N.C., has been adjusted to "Buy" with a price target of $53.....

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