Stelco (TSE:STL) Upgraded to “Outperform Market Weight” at National Bank Financial

Stelco Inc. (TSX: STEL) is a leading North American steel producer that operates in the United States and Canada. The company produces a range of high-quality steel products, including flat sheet steel, hot rolled coil, cold rolled coil, and specialty steels.

On August 12, 2021, National Bank Financial (NBF) upgraded its recommendation on Stelco TSESTL from "Market Weight" to "Outperform." This upgrade reflects NBF's belief that Stelco is well-positioned to benefit from the ongoing recovery in the North American steel market.

According to NBF, the North American steel market has been experiencing strong demand due to increased construction activity and a rebound in automotive production. Additionally, the market has seen a decline in imports of finished steel products, which has helped to support domestic producers like Stelco.

NBF also notes that Stelco has made significant investments in its operations over the past few years, including the acquisition of U.S. Steel's North American flat sheet business and the expansion of its hot rolled coil mill in Edmonton, Canada. These investments have helped to improve the company's efficiency and increase its production capacity, which should help it to capture a larger share of the growing North American steel market.

Overall, NBF believes that Stelco is well-positioned to benefit from the ongoing recovery in the North American steel market and has upgraded its recommendation on the stock to "Outperform."