The Globe and Mail reports in its Wednesday, Dec. 20, edition that RBC Dominion Securities analyst James McGarragle has reaffirmed his "sector perform" recommendation for Stelco Holdings. The Globe's David Leeder writes in the Eye On Equities column that Mr. McGarragle jacked his share target up by $5 to $46. Analysts on average target the shares at $47.93. Despite its share price rising almost 30 per cent thus far in the fourth quarter, Mr. McGarragle believes the valuation for Stelco Holdings remains below U.S. peers, which he thinks is "unwarranted" given "solid" operational performance and "similar end market demand drivers." Mr. McGarragle says, "Stelco shares traded up 30 per cent quarter-to-date on the back of a recent surge in steel prices, in line with Cleveland Cliffs, but below U.S. Steel, which [Monday] saw its share price surge following an announcement it agreed to be acquired by Nippon Steel." In a preview of the company's fourth quarter, Mr. McGarragle cut his earnings before interest, taxes, depreciation and amortization expectation for Stelco to $56-million from $71-million, below the Street's forecast of $61-million, due to the timing of expected coal pricing benefits.