On 26 November 2009, POSCO common stock reached our target price. However, our fundamental outlook remains unchanged and we therefore believe that the stock's 6-12 month upside potential has now been exhausted. Accordingly, we downgrade the common stock from a BUY to a HOLD. We will reassess our common stock rating in our next update report. As we continue to anticipate a significant positive currency impact on the ADR over the coming 6-12 months we reiterate the ADR a BUY. We will reassess our ADR (4 ADRs = 1 common share) rating in our next update report.

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