Upgrade: Steel Stocks In For Trump Renaissance

(RTTNews) - Shares of steel companies have gained since Donald Trump won the US Presidential election.

Morgan Stanley has upgraded U.S. steel companies for the first time in a decade. The firm said, "President-elect Trump's proposals for increased infrastructure spending and increased trade protection could push the U.S. steel market into meaningful undersupply for the first time since the Great Financial Crisis".

Morgan Stanley upgraded U.S. Steel and AK Steel to Buy and Cliffs Natural Resources to Neutral.

Morgan Stanley analysts expects Donald Trump's policies to benefit the U.S. steel industry as it would increase demand as well as curb import supply.

"We conservatively estimate Trump's $550 billion stimulus plan would increase steel demand by 20% annually for five years. We calculate an incremental 22 million tons of demand in each year the program is in effect," Morgan Stanley said.