AK Steel Holding Corporation (NYSE:AKS) surged after receiving positive recommendations from an analyst at Nomura Securities today. The shares of the company climbed more than 9% to $6.32 per share around 3:24 in the afternoon in New York.

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Analyst’s rating and estimates for AK Steel

Nomura Securities analyst Curt Woodworth upgraded his rating for the shares of AK Steel Holding Corporation (NYSE:AKS) to Buy and raised his price target to $10 per share. The analysts previously had a Neutral rating and $7 price target for the stock.

In addition, the analyst also estimated that AK Steel Holding Corporation (NYSE:AKS) would be able to achieve EBITDA of $795 million, higher than the consensus estimate of $697 million for the fiscal 2015. Its FCF is expected to be around $1.95 per share,

For the fiscal 2016, Woodworth forecasted that AK Steel Holding Corporation (NYSE:AKS) would be able to generate as much as $856 million in EBITDA and FCF of around $2.57 per share.

The analysts said the company would benefit from additional synergies from its Dearborn acquisition, further declines in prices and a full-year contribution from Magnetation.

“AK Steel should experience a material increase in EBITDA and FCF in 2015 owing to significant raw material cost down, accretion from the Dearborn acquisition, improvements in electrical steel markets, higher automotive margins, elimination of substantial weather and outage costs from 2014, and positive operating leverage,” said Woodworth in a note to investors.

AK Steel introduced Chromeshield 22

Last month, AK Steel Holding Corporation (NYSE:AKS) introduced a new nickel-free stainless steel product called Chromeshield 22 with enhanced benefits and stable pricing.

The company’s research center in Middletown, Ohio developed Chromeshield 22 for manufacturers of appliances, food service equipment, tubing, cookware, automotive exhaust components and heat exchangers.

AK Steel Holding Corporation (NYSE:AKS) said Chromeshield 22 is rust and stain resistant with excellent corrosion properties. The company emphasized that the corrosion resistance of the product will meet or exceed the performance of conventional nickel-bearing stainless steels.

Chromeshield 22 also withstands extreme temperature changes better than nickel-bearing grads of stainless steel used for similar applications. The product receives approval from NSF International as safe for food contact.