Universal Stainless: A knight in stainless steel
America’s “Rust Belt” doesn’t look quite so decrepit around the mills of Universal Stainless & Alloy (Nasdaq:USAP), a Pennsylvania steel company that has managed to retain its sheen despite the withering U.S. economy.
The specialty steelmaker found its niche making products such as landing gear components and airfoils for the aerospace industry, turbine blades for power generation systems, corrosion-resistant products for petrochemical plants, and tool-and-die industry parts. More than half of Universal’s output is stainless, but its semi-finished and finished specialty products also include tool and alloyed steels.
Of the analysts following Universal Stainless & Alloy, Thomson Reuters found that two of four rate the stock at “hold,” with another calling it a “buy” and one placing it at “strong buy.”
Reflecting this split decision leaning to the positive side, shares of Universal Stainless are about where they started the year, having opened at $35.62 before sinking to a 52-week low of $23.14 on Jan. 23. Universal reached its 52-week high of $42.66 last July 16. At Thomson, the median price target is $41.
Universal traded at historical highs above $50 in early 2007, before helter-skelter nickel prices and the faltering economy sent shares lower. Most recently, Universal Stainless closed Wednesday at $34.50.
In pursuing aerospace business, Universal Stainless does face some headwinds, such as aircraft orders being put off or delays in 787 Dreamliner development by Boeing Co. (NYSE:BA). While much of that next-generation plane is made of composite materials, it’ll need plenty of specialty metal parts. Universal President and CEO Dennis Oates said on an April 24 conference call with analysts that the impact from 787 delays . . .
The specialty steelmaker found its niche making products such as landing gear components and airfoils for the aerospace industry, turbine blades for power generation systems, corrosion-resistant products for petrochemical plants, and tool-and-die industry parts. More than half of Universal’s output is stainless, but its semi-finished and finished specialty products also include tool and alloyed steels.
Of the analysts following Universal Stainless & Alloy, Thomson Reuters found that two of four rate the stock at “hold,” with another calling it a “buy” and one placing it at “strong buy.”
Reflecting this split decision leaning to the positive side, shares of Universal Stainless are about where they started the year, having opened at $35.62 before sinking to a 52-week low of $23.14 on Jan. 23. Universal reached its 52-week high of $42.66 last July 16. At Thomson, the median price target is $41.
Universal traded at historical highs above $50 in early 2007, before helter-skelter nickel prices and the faltering economy sent shares lower. Most recently, Universal Stainless closed Wednesday at $34.50.
In pursuing aerospace business, Universal Stainless does face some headwinds, such as aircraft orders being put off or delays in 787 Dreamliner development by Boeing Co. (NYSE:BA). While much of that next-generation plane is made of composite materials, it’ll need plenty of specialty metal parts. Universal President and CEO Dennis Oates said on an April 24 conference call with analysts that the impact from 787 delays . . .
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