Zacks Investment Research upgraded shares of Companhia Siderurgica Nacional (SID) from NEUTRAL to OUTPERFORM on September 12, 2013, with a target price of $5.00.
CSN is among the leading steel producers in Brazil and is also well known for its high quality steel worldwide. Long term growth prospects are bright as it seems the company is well positioned to leverage benefits from the rising wave of infrastructural requirements in the domestic and international markets. The World Steel Association predicts global steel consumption to grow 2.9% in 2013 and 3.2% in 2014. Instabilities in the U.S. and the Eurozone are abating while China has recently shown solid signs of growth all these favor growth prospects of CSN. To cope with the anticipated rise in steel demand, the company has made investments to improve its production capacity of steel. Besides steel, SID's exposure to iron ore mining, cement, and infrastructure projects makes it an attractive stock to own. Talking of CSN's financial background, earnings per ADR of $0.17 surpassed the Zacks Consensus Estimate of $0.03 by a wide margin. Considering the above, we upgrade CSN from Neutral to an Outperform recommendation.
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