MTL to Post Robust Results for 3Q09

Analyst Olga Okuneva of Deutsche Bank maintains his “hold” rating on Mechel (NYSE: MTL). The target price for MTL is set to $19.

MTL is scheduled to report its 3Q09 results on December 8, 2009. The analyst expects Mechel to post robust results for the quarter. The company is likely to report a high sequential improvement in both production and financials.

The analyst expects Mechel to post 30% EBITDA margins from its mining segment, and 16% consolidated EBITDA margins for the quarter. Revenues are likely to have grown 30% QoQ. MTL’s steel segment, which incurred a loss in 2Q09, might have returned to profitability, supported by positive currency effects, Deutsche Bank adds.