www.jpmorganmarkets.comNorthAmericaEquityResearch15January2019EquityRatingsandPriceTargetsMktCapPriceRatingPriceTargetCompanyTicker($mn)CCYPriceCurPrevCurEndDatePrevEndDateAlleghenyTechnologiesATIUS3,103.71USD24.79Nn/c28.00Dec-19n/cn/cCenturyAluminumCompanyCENXUS750.73USD8.57Nn/c11.00Dec-1915.00Dec-19Cleveland-CliffsIncCLFUS2,667.75USD8.60OWn/c15.00Dec-19n/cn/cConstelliumCSTMUS1,080.89USD7.70OWn/c15.00Dec-19n/cn/cFreeport-McMoRanFCXUS16,912.80USD11.60Nn/c14.00Dec-19n/cn/cKaiserAluminumKALUUS1,610.33USD95.95Nn/c98.50Dec-19n/cn/cNucorCorp.NUEUS17,927.60USD56.59OWn/c89.00Dec-19n/cn/cStelcoSTLCCN984.07CAD14.70OWn/c45.00Dec-19n/cn/cU.S.SteelCorpXUS3,768.81USD21.04OWn/c65.00Dec-19n/cn/cTeckResourcesTECK/BCN13,263.82CAD30.22OWn/c49.50Dec-19n/cn/cSource:Companydata,Bloomberg,J.P.Morganestimates.n/c=nochange.Allpricesasof11Jan19.NorthAmericaMetals&Mining4Q18EarningsPreview&CalendarNorthAmericaMetals&MiningMichaelF.GambardellaAC(1-212)622-6446michael.gambardella@jpmorgan.comBloombergJPMAGAMBARDELLATylerJ.Langton(1-212)622-5234tyler.j.langton@jpmorgan.comStephanieYee(1-212)622-5032stephanie.yee@jpmorgan.comJ.P.MorganSecuritiesLLCSeepage43foranalystcertificationandimportantdisclosures.J.P.Morgandoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethatthefirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreport.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.BasemetalandsteelpriceseasedthroughoutQ4,which,alongwithtypicalseasonality,shouldpressureQ4earningsformostofthecompaniesinourcoverageuniverse.Thatsaid,wedon’texpectmuchfurtherdownsideinU.S.steelprices,whichevenabsentthe232,shouldbesupportedbyjustthestricterenforcementofexistingtradedutiesandlaws.Onthebasemetalsside,weseeupsideinthestockswhenassumingforwardcurvepricesthatarenotmeaningfullyhigherthanspotprices.Ourcoverageuniverseisup13%onaverageYTDvs.theS&P500's4%gain,andwethinkourgroupcouldcontinuetooutperformthemarketifjustc...
