KEMET (KEM) (CRWS) (CP) (CLMS) (CMC) (ALGN) Ratings, Price Targets

KEMET Co. (NYSE: KEM), Crown Crafts Inc. (NASDAQ: CRWS), Canadian Pacific Railway Limited (NYSE: CP), Calamos Asset Management, Inc. (NASDAQ: CLMS), Commercial Metals (NYSE: CMC) and Align Tech (NASDAQ: ALGN) ratings and price targets.

KEMET Co. (KEM) had its “neutral” rating reiterated by UBS AG (NYSE:UBS).

Crown Crafts Inc. (CRWS) is now covered by Roth Capital. They have a “buy” rating on the firm.

Canadian Pacific Railway Limited (CP) had its price target raised by BMO Capital Markets to $75.00.

Calamos Asset Management, Inc. (CLMS) was downgraded by Goldman Sachs (NYSE:GS)from a “neutral” rating to a “sell” rating.

Commercial Metals (CMC) was downgraded by CRT Capital to a “buy” rating.

Align Tech (ALGN) was upgraded by Northcoast Research from a “neutral” rating to a “buy” rating.

Wal-Mart (WMT) (CMC) (RIC) (RAIL) (HPQ) Getting New Coverage

Wal-Mart Stores Inc (NYSE: WMT), Commercial Metals (NYSE: CMC), Richmont Mines Inc. (NYSE: RIC), FreightCar America, Inc. (NASDAQ: RAIL) and Hewlett-Packard (NYSE: HPQ) getting new coverage from analysts.

Jefferies (NYSE:JEF) initiated coverage on Hewlett-Packard (HPQ). They have a "Hold" rating on the company with a price target of $40.00.

Morgan Stanley (NYSE:MS) launched coverage on Wal-Mart Stores Inc (WMT). They have an "Equal Weight" rating on the retail giant.

Sterne Agee initiated coverage on shares of FreightCar America, Inc. (RAIL). They have a "Buy" rating on the company and a price target of $35.00.

CRT Capital started coverage on Commercial Metals (CMC). They have a "Buy" rating on the company.

Rodman & Renshaw initiated coverage on Richmont Mines Inc. (RIC). They have an "Outperform" rating on the company with a price target of $10.00 a share.

Commercial Metals closed Tuesday at $13.88, gaining $0.04, or 0.29 percent. Richmont Mines Inc. closed at $7.71, jumping $0.50, or 6.93 percent. FreightCar America, Inc. ended the session at $26.39, rising $0.45, or 1.74 percent. Wal-Mart closed the day at $53.96, up $0.09, or 0.16 percent. Hewlett-Packard closed at $35.28, down 0.01, or 0.03 percent.

Coverage on (AKS) (ATPG) (CMC) (MRO) (LPR) Initiated by Analysts

Analysts initiated coverage on AK Steel Holding Co. (NYSE: AKS), ATP Oil & Gas Co. (NASDAQ: ATPG), Commercial Metals (NYSE: CMC), Marathon Oil Co. (NYSE: MRO) and Lone Pine Resources (NYSE: LPR).

Jefferies (NYSE:JEF) initiated coverage on shares of AK Steel Holding Co. (AKS). They placed a “hold” rating and a price target of $18.00 on the company.

Rodman & Renshaw initiated coverage on ATP Oil & Gas Co. (ATPG). They placed an “outperform” rating and a price target of $22.00 on the company.

Jefferies initiated coverage on Commercial Metals (CMC). They placed a “hold” rating and a price target of $16.50 on the company.

Morgan Stanley (NYSE:MS) initiated coverage on shares of Marathon Oil Co. (MRO). They placed an “equal weight” rating and a price target of $41.00 on the company.

Wells Fargo & Co. (NYSE:WFC) initiated coverage on shares of Lone Pine Resources (LPR). They placed an “outperform” rating on the company.

AK Steel closed Friday at $16.22, down $0.39, or 2.35 percent. ATP Oil & Gas closed at $15.81, falling $0.04, or 0.25 percent. Commercial Metals closed at $14.31, dropping $0.05, or 0.35 percent. Marathon Oil ended the session at $32.67, losing $0.43, or 1.30 percent. Lone Pine Resources closed at $11.11, gaining $0.20, or 1.83 percent.

Steel's (CMC) (HAYN) (SYNL) (USAP) (SCHN) Face Volatility

Steelmakers Commercial Metals Company (NYSE:CMC), Haynes International Inc. (Nasdaq:HAYN), Synalloy Corp. (Nasdaq:SYNL), Universal Stainless & Alloy Pr (Nasdaq:USAP) and Schnitzer Steel Industries (NASDAQ:SCHN) are under pressure as costs mount for raw materials and steel demand slows.

A lot of uncertainty surrounds the steel sector as evidenced by the guidance given by the largest steelmaker in the world - ArcelorMittal (NYSE:MT). Even after beating estimates for the latest quarter the stock was punished on a weak outlook, dragging down much of the sector with it.

In the short term Arcelor was able to offset higher costs of raw materials by boosting prices, but for the overall steel industry it's questionable as to how high and long they'll be able to do that.

Softer steel prices in North America and Europe point to major challenges going forward for steel companies, as margins will continue to come under pressure.

According to Banco Santander SA, costs of coking coal jumped 68 percent and iron ore 77 percent in the first quarter of 2011.

The steel industry is projected to grow at a 5.9 percent clip this year, says the World Steel Association. Some think that's at the high end of the spectrum.

Pricing will remain a challenge in light of the new pricing system put in place where steelmakers say it's harder to pass on costs to customers because of difficulty in projecting costs.

Expectations are the second half of 2011 will be slow for the industry.

Steel's (CMC) (HAYN) (SYNL) (USAP) (SCHN) Face Volatility

Steelmakers Commercial Metals Company (NYSE:CMC), Haynes International Inc. (Nasdaq:HAYN), Synalloy Corp. (Nasdaq:SYNL), Universal Stainless & Alloy Pr (Nasdaq:USAP) and Schnitzer Steel Industries (NASDAQ:SCHN) are under pressure as costs mount for raw materials and steel demand slows.

A lot of uncertainty surrounds the steel sector as evidenced by the guidance given by the largest steelmaker in the world - ArcelorMittal (NYSE:MT). Even after beating estimates for the latest quarter the stock was punished on a weak outlook, dragging down much of the sector with it.

In the short term Arcelor was able to offset higher costs of raw materials by boosting prices, but for the overall steel industry it's questionable as to how high and long they'll be able to do that.

Softer steel prices in North America and Europe point to major challenges going forward for steel companies, as margins will continue to come under pressure.

According to Banco Santander SA, costs of coking coal jumped 68 percent and iron ore 77 percent in the first quarter of 2011.

The steel industry is projected to grow at a 5.9 percent clip this year, says the World Steel Association. Some think that's at the high end of the spectrum.

Pricing will remain a challenge in light of the new pricing system put in place where steelmakers say it's harder to pass on costs to customers because of difficulty in projecting costs.

Expectations are the second half of 2011 will be slow for the industry.

Schnitzer Steel Industries (SCHN) closed Wednesday at $57.00, falling $1.34, or 2.30 percent.

Steel's (X) (TS) (SIM) (CMC) (CRS) and China Demand

For the most part, as goes China so goes the demand for steel, and in that regard it doesn't look good for steel companies like Tenaris SA (NYSE:TS), Grupo Simec S.A.B. de C.V. (AMEX:SIM), Commercial Metals Company (NYSE:CMC), US Steel (NYSE:X) and Carpenter Technology (NYSE:CRS), which are going to be pressured in the years ahead from declining demand from the Middle Kingdom.

According to the China Iron & Steel Association, the Chinese government is pushing to slow down economic growth, which will result in demand for steel in the country to slow down.

Estimates under the current scenario for the steel sector have steel consumption declining in China by a minimum of 2.6 percent to as high as 4.6 percent in 2011.

Globally it doesn't look good for the next five years or so either, as the top estimates are for steel demand to grow at a 5 percent rate annually, although many think it'll be less than that.

In the short term, the U.S. steel industry should ship product at 14 percent above 2010 levels, reaching about 95 million tons in 2011.

All the companies are being affected by soaring iron ore prices and other inputs, which are putting stress on margins and earnings because buyers are hesitating to acquire product at too high of prices; something that will continue for several years.

For the steel industry, there isn't much to be optimistic about, no matter how the situation is spun. It's going to remain tough for some time.

US Steel closed Wednesday at $46.80, falling $0.68, or 1.43 percent.

Steel Firms (STLD) (HAYN) (CMC) (AKS) (MT) Pressured on Low Growth Outlook

The steel sector, even with some strong recent quarters from companies, looks weak, as over the next five years it is projected to grow at a pace of about 5 percent or less annually, placing downward pressure on steel producers like Steel Dynamics Inc. (Nasdaq:STLD), Haynes International Inc. (Nasdaq:HAYN), Commercial Metals Company (NYSE:CMC), AK Steel Holding Corporation (NYSE:AKS) and ArcelorMittal (NYSE:MT). And that's the more positive outlook by most analysts. A large number don't believe growth will even happen at that rate.

A majority of steel companies are being pressured to increase prices on their products in order to protect margins and earnings as the price of inputs and commodities rise.

That's not to say steel demand is falling completely, because it's not. But rising demand in some segments doesn't guarantee rising profits, as the industry is experiencing. A number of weak economies around the world could cut also into demand if steel prices and products rise to prohibitive levels.

There's no way to spin the outlook for the steel industry positively. The industry will struggle for years even in the midst of strong demand in some segments, as they attempt to work out the balance between steel demand, rising inputs, and ability for companies and countries to afford price increases from producers.

Steel Dynamics closed Friday at $18.19, up $0.01, or 0.06 percent.

Ternium (TX) (STLD) (SIM) (CMC) (TS) Pressured on Low Growth Steel Outlook

The steel industry, even with some strong recent quarters, looks weak, as over the next five years it is expected to grow at a pace of about 5 percent or less annually, putting downward pressure on steel companies like Ternium S.A. (NYSE:TX), Steel Dynamics Inc. (Nasdaq:STLD), Grupo Simec S.A.B. de C.V. (AMEX:SIM), Commercial Metals Company (NYSE:CMC) and Tenaris SA (NYSE:TS); although they traded a little stronger Thursday.

A majority of steel companies are being forced to raise prices on their products in order to protect margins and earnings as the price of inputs and commodities rise.

That's not to say steel demand is falling, because it's not. But rising demand doesn't guarantee rising profits, as the industry is experiencing. A number of weak economies around the world could cut also into demand if steel prices and products rise to prohibitive levels.

There's no way to spin the outlook for the steel industry positively. The industry will struggle for years even in the midst of strong demand, as they attempt to work out the balance between steel demand, rising inputs, and ability for companies and countries to afford price increases from producers.

It also looks like the U.S. economy is starting to sputter again, and that's not good news for the steel industry either.

US Steel (X) (TS) (CMC) (CRS) Close Mixed on Cost, Growth Concerns

The steel industry, even with some strong recent quarters, looks weak, as over the next five years it is expected to grow at a pace of about 5 percent or less annually, putting downward pressure on steel producers like Tenaris SA (NYSE:TS), Commercial Metals Company (NYSE:CMC), US Steel (NYSE:X) and Carpenter Technology (NYSE:CRS), which closed mixed on Tuesday. And that's the more positive outlook by the majority of analysts. Many don't think growth will even happen at those modest levels.

A majority of steel companies are being forced to raise prices on their products in order to protect margins and earnings as the price of inputs and commodities rise.

That's not to say steel demand is falling, because it's not. But rising demand doesn't guarantee rising profits, as the industry is experiencing. A number of weak economies around the world could cut also into demand if steel prices and products rise to prohibitive levels.

Of course there a large varieties of companies with steel exposure, and each segment of the sector can represent strengths or weaknesses. So each unit and company will have to be watched closely for performance of course.

There's no way to spin the outlook for the steel industry in a positive manner. The industry will struggle for years even in the midst of strong demand as it attempts to work through the balance between steel demand, rising inputs, and ability for companies and countries to afford price increases from producers.

Some winners will emerge, but over time it's not easy to pick any one that's going to stand out. Some have looked to larger companies who may be able to navigate through the higher costs better, but we'll see if that's the case, as it isn't always that simple because of the wide variety of products and costs and pricing power with each one.

Nucor (NUE) (CMC) (CPSL) (MT) Pressured on Low Growth Outlook

The steel industry, even with some strong recent quarters, looks weak, as over the next five years it is expected to grow at a pace of about 5 percent or less annually, putting downward pressure on steel producers like Commercial Metals Company (NYSE:CMC), China Precision Steel, Inc. (Nasdaq:CPSL), Nucor (NYSE:NUE) and ArcelorMittal (NYSE:MT), even with a couple of decent quarterly results coming from their peers, like Steel Dynamics (NASDAQ:STLD). And that's the more positive outlook by the majority of analysts. Many don't think growth will happen even at that rate.

A majority of steel companies are being pressured to raise prices on their products in order to protect margins and earnings as the price of inputs and commodities jump.

That's not to say steel demand is falling, because it's not. But the slowly rising demand doesn't guarantee rising profits, as the industry is experiencing at this time. A number of weak economies around the world could also cut into demand if steel prices and products rise to prohibitive levels.

There's no way to spin the outlook for the steel industry in a positive manner. The industry will struggle for years, even in the midst of better demand, as it attempts to work out the balance between steel demand, rising inputs, and ability for companies and countries to afford price increases from the producers.

ArcelorMittal closed Thursday at $36.50, gaining $0.39, or 1.08 percent. Nucor ended the session at $46.15, falling $0.33, or 0.71 percent. China Precision Steel, Inc. closed at $1.55, up $0.01, or 0.65 percent. Commercial Metals Company closed at $16.47, rising $0.04, or 0.24 percent.

Synalloy (SYNL) (AKS) (CMC) (IIIN) Get Boost from Steel Consumption Report, (STLD)

Investors have suddenly become steel industry and company believers after the performance of Steel Dynamics, Inc. (Nasdaq:STLD) and the release of estimates for glow steel production by the World Steel Association, which pushed up the share prices of AK Steel Holding Corporation (NYSE:AKS), Commercial Metals Company (NYSE:CMC), Synalloy Corp. (Nasdaq:SYNL) and Insteel Industries Inc. (Nasdaq:IIIN) Wednesday.

Steel Dynamics gave as its reason for the optimism as growing backlogs in the company’s structural and rail division, but quietly added some of that could have been weather-related.

Also the projected global steel consumption growth of 5.9 percent didn't included the potential devastating effect the slowdown in Japan will have, as it's the largest consumer of steel in the world. Without that, the numbers are pretty meaningless. And it will take time, as with everything related to Japan at this time, before we know the full impact on steel and other sectors.

Insteel Industries Inc. closed Wednesday at $13.30, gaining $0.07, or 0.53 percent. Synalloy Corp. ended the day at $14.05, up $0.39, or 2.86 percent. Commercial Metals Company closed at $16.43, jumping $0.27, or 1.67 percent. AK Steel Holding Corporation closed the session at $16.18, rising $0.10, or 0.62 percent.

Insteel (IIIN) (FRD) (GSI) (CMC) Jump on Steel Dynamics' Results

Even though the results of Steel Dynamics (NASDAQ:STLD) gave steel stocks like Commercial Metals Company (NYSE:CMC), Insteel Industries Inc. (Nasdaq:IIIN), Friedman Industries Inc. (AMEX:FRD) and General Steel Holdings (NYSE:GSI) a big boost Tuesday, overall, the steel industry looks weak over the next five years, as it is expected to grow at a pace of 5 percent or less annually, putting downward pressure on steel producers like. And that's the more optimistic outlook by analysts. Most don't think growth will be at that rate.

Most steel companies are being forced to raise prices on their products in order to protect margins and earnings, as the price of inputs and commodities rise.

That's not to say steel demand is dropping, because it's not. But rising demand doesn't guarantee rising profits, as the industry is finding out. Weak economies around the world could cut into demand if steel prices and products rise to prohibitive levels.

There's no way to spin this in a positive manner. The industry will struggle for years even in the midst of strong demand, as they attempt to work out the balance between steel demand, rising inputs, and ability for companies and countries to afford price increases from producers.

As for Steel Dynamics, it admits bad weather in February could have been the reason for the jump in March shipments. Even if steel companies in general have a good quarter to report, it's very doubtful it has changed the outlook over the next several years. It could be a chance to make some quick money though.

Steel Dynamics (NASDAQ:STLD) closed at $18.46, gaining $1.00, or 5.73 percent. Insteel Industries Inc. closed at $13.23, rising $0.10, or 0.76 percent. General Steel Holdings closed at $2.12, jumping $0.04, or 1.92 percent. Friedman Industries Inc. ended the session at $10.37, increasing $0.17, or 1.67 percent. Commercial Metals Company closed at $16.16, gaining $0.18, or 1.13 percent.

Friedman (FRD) (ROCK) (CMC) (SUTR) Drop as Commodities Correct

A general correction in commodities prices as a result of the plunge in oil prices pressured the steel sector, with Friedman Industries (AMEX:FRD), Gibraltar Industries (Nasdaq:ROCK) Commercial Metals (NYSE:CMC) and Sutor Technology (Nasdaq:SUTR) all closing down Tuesday.

Crude oil prices for May delivery were down as much as 63 cents, or 0.6 percent, to $105.62 a barrel in electronic trading on the New York Mercantile Exchange. The contract was at $106.01 at 10:14 a.m. Sydney time. Yesterday, it dropped $3.67 to $106.25. Prices fell 5.9 percent on April 11 and 12.

The U.S. raised its crude-oil price estimate for 2011 to an average $106.38 a barrel from $101.77 in March, according to the Energy Department’s Short-Term Energy Outlook.

Friedman Industries closed Tuesday at $10.43, falling $0.07, or 0.67 percent. Sutor Technology closed at $1.62, down $0.02, or 1.22 percent. Commercial Metals closed at $16.42, dropping $0.06, or 0.36 percent. Gibraltar Industries ended the session at $11.48, declining $0.59, or 4.89 percent.

Steel's (MTL) (CMC) (CPSL) (SID) (GSI) Pressured on Low Growth Outlook

The steel industry is uninspiring as over the next five years it is expected to grow at a pace of 5 percent or less annually, putting downward pressure on steel producers like China Precision Steel, Inc. (Nasdaq:CPSL), Commercial Metals Company (NYSE:CMC), Companhia Siderurgica Nacional (NYSE:SID), Mechel OAO (NYSE:MTL) and General Steel Holdings (NYSE:GSI). And that's the more positive outlook from some analysts.

Steel companies listed represent a good cross section of the industry, as they're based in several countries.

Many steel companies are being forced to increase prices on their products in order to protect margins and earnings, as the price of inputs and commodities continue to surge.

That's not to say steel demand is declining, because it's not. But rising demand doesn't guarantee rising profits, as the industry is finding out. Weak economies around the world could cut into demand if steel prices and products rise to prohibitive levels.

There's no way to spin this positively. The industry will struggle for years, even in the midst of strong demand as they try to figure out the balance between steel demand, rising inputs, and ability for companies and countries to afford price increases from them.

Mechel OAO closed Friday at $30.07, falling $0.65, or 2.12
percent. China Precision Steel, Inc. closed at $1.65, down $0.04, or 2.37 percent. Commercial Metals Company ended the session at $16.93, dropping $0.37, or 2.13 percent. Companhia Siderurgica Nacional closed at $16.83, falling $0.06, or 0.36 percent. General Steel Holdings ended trading at $2.29, down $0.04, or 1.72 percent.

Shares of US Steel (NYSE:X), AK Steel (NYSE:AKS), Commercial Metals (NYSE:CMC) Come Crashing Down

Shares of steel producers US Steel (NYSE:X), AK Steel (NYSE:AKS) and Commercial Metals (NYSE:CMC) ended down significantly Friday, as concerns over a stronger US dollar and the possible reversal of rising steel prices motivated investors to take profits while they're still on the table.

Other steel companies were down to end the week, but the above three plunged the most.

Electric-arc furnace operators like Nucor (NYSE:NUE) and Steel Dynamics (NASDAQ:STLD) weren't under as much pressure, with STLD actually ended slightly up, and Nucor finishing down a little. Lower scrap prices helped prop them up some.

ArcelorMittal (NYSE:MT) was also closed down on Friday, but not as drastic as the top three.

ArcelorMittal closed Friday at $36.14, dropping $0.27, or 0.74 percent. Nucor closed at $47.97, falling $0.24, or 0.50 percent. Commercial Metals ended the session at $16.83, down $0.34, or 1.98 percent. AK Steel closed at $15.84, down $0.49, or 3.00 percent. US Steel ended the day at $58.17, losing $2.47, or 4.07 percent. Steel Dynamics closed at $18.95, gaining $0.03, or 0.17 percent.

Commercial Metals (NYSE:CMC) Struggling in Fabrication, Mills Units

Commercial Metals (NYSE:CMC) will continue to struggle in 2011, according to Goldman Sachs (NYSE:GS), citing losses in its Americas Fabrication division and International Mills division.

Goldman added, "CMC is facing additional headwinds from a slower than-expected turnaround at its Croatian mill and continued losses at the Arizona mill due to a low utilization rate. Although the non-res market appears to be approaching a bottom, we believe it is too early to become more constructive on the name, as a recovery will not likely begin before 2012."

EPS estimates for the 2nd quarter were lowered from $0.13 to $0.08, and raising the 3rd and 4th quarter estimates from $0.19/$0.32 to $0.26/$0.40.

For full year 2011 EPS estimate, that was lowered from $0.65 to $0.58.

In the second half of its fiscal 2011 margins could improve on probable increases in steel prices.

Goldman Sachs reiterates their "Sell" rating on Commercial Metals Company, which closed Monday at $16.87, up $0.28, or 1.69 percent.

Gerdau S.A. (NYSE:GGB), Steel Dynamics (Nasdaq:STLD), Commercial Metals (NYSE:CMC), Olympic Steel (Nasdaq:ZEUS), Schnitzer Steel (NASDAQ:SCHN) in 2010

Steelmakers had a rough go of it in 2010, and most companies plunged in the early part of April, including companies like Gerdau S.A. (NYSE:GGB), Steel Dynamics (Nasdaq:STLD), Commercial Metals (NYSE:CMC), Olympic Steel (Nasdaq:ZEUS) and Schnitzer Steel (NASDAQ:SCHN).

Gerdau S.A. ended the year at $13.99, gaining $0.14 on December 31, up 1.01 percent. The company had a 52-week trading range of $11.49 to $17.99. They ended the year with a market cap of $19.85 billion.

Commercial Metals closed the year out at $16.59, losing $0.11 on the last trading day, down 0.66 percent. The trading range for 2010 was from $12.12 to $18.18. They ended the year with a market cap of $1.90 billion. They had an extremely volatile year.

Olympic Steel finished off the year at $28.68, dropping $0.18 on Friday, a loss of 0.62 percent. The 2010 trading range for them was $20.18 to $36.75. They closed off the year with a market cap of $312.47 million.

Steel Dynamics ended 2010 at $18.30, down $0.13 on the final trading day of the year, losing 0.71 percent. Their trading range for the year was $12.89 to $20.47. Their market cap heading into 2011 is $3.97 billion.

Schnitzer Steel finished 2010 at $66.39, gaining $0.08, or 0.12 percent on the last day of the year. Their 52-week trading range was $37.00 to $66.85. Their market cap at the end of the year was $1.80 billion.