- RBC Capital analyst Arun Viswanathan downgraded GrafTech International Ltd (NYSE:EAF) to Sector Perform from Outperform and lowered the price target to $7 (an upside of 9%) from $10.
- The analyst states that the downgrade reflects cost/demand headwinds and lower average realized price for LTAs in the ~$7K range (from ~$9K).
- Viswanathan mentions that given the current macro enlivenment and HRC steel prices, he sees no need for EAF’s customers to lock in LTAs and/ or to lock in LTAs at prices significantly above current spot levels.
- The analyst expects demand to wane for electrodes and electric arc furnace steel.
- He also sees macro headwinds diminishing electrode demand and the elevated risk of a recession, especially in Europe, which should result in a cyclical downturn in construction and the need for steel.
- Price Action: EAF shares are trading lower by 5.52% at $6.41 on the last check Wednesday.
Why Is An Earnings Beat Less Likely For BNY Mellon (BK) In Q2?
The Bank of New York Mellon Corporation BK is scheduled to report second-quarter 2022 results on Jul 15, before market open. While its revenues in the to-be-reported quarter are expected to have witnessed a rise on a year-over-year basis, earnings are likely to have declined.
