United States Steel Corp. Downgraded to Neutral at UBS AG (X)
United States Steel Corp. (NYSE:X) was downgraded by research analysts at UBS AG from a “buy” rating to a “neutral” rating in a report released on Tuesday, TheFlyOnTheWall.com reports. They currently have a $25.00 target price on the stock, up from their previous target price of $22.00. UBS AG’s target price points to a potential upside of 4.12% from the stock’s previous close.
The analysts wrote, “As an integrated steel producer, X has been burdened by high fixed costs in the weak steel markets of recent years and high legacy liabilities due to low discount rates. We expect US Steel to benefit from reduced pension liabilities in 2014, while also improving margins through cost reduction and revenue maximization efforts currently underway. However, we remain concerned about increasing competition in X’s most profitable segment, Tubular goods, and we only see sector capacity utilization reaching higher levels in 2016, meaning margins could remain weak in the medium term. We rate US Steel a Neutral and our $25 PT is based on a 7.0x EV/EBITDA (2015) multiple.”
Other equities research analysts have also recently issued reports about the stock. Analysts at Standpoint Research downgraded shares of United States Steel Corp. from a “buy” rating to a “hold” rating in a research note to investors on Thursday, October 17th. They noted that the move was a valuation call. Separately, analysts at Credit Suisse initiated coverage on shares of United States Steel Corp. in a research note to investors on Wednesday, October 16th. They set a “neutral” rating on the stock. Finally, analysts at BMO Capital Markets initiated coverage on shares of United States Steel Corp. in a research note to investors on Tuesday, September 17th. They set a “market perform” rating and a $19.00 price target on the stock. Three analysts have rated the stock with a sell rating, thirteen have issued a hold rating and one has given a buy rating to the stock. The company presently has a consensus rating of “Hold” and a consensus target price of $19.73.
Shares of United States Steel Corp. (NYSE:X) traded down 2.62% during mid-day trading on Tuesday, hitting $23.38. The stock had a trading volume of 5,199,918 shares. United States Steel Corp. has a one year low of $15.80 and a one year high of $26.29. The stock’s 50-day moving average is $21.01 and its 200-day moving average is $18.70. The company’s market cap is $3.382 billion.
United States Steel Corp. (NYSE:X) last issued its quarterly earnings data on Tuesday, July 30th. The company reported ($0.54) EPS for the quarter, beating the Thomson Reuters consensus estimate of ($0.77) by $0.23. The company had revenue of $4.43 billion for the quarter, compared to the consensus estimate of $4.61 billion. During the same quarter in the prior year, the company posted $0.69 earnings per share. The company’s quarterly revenue was down 11.7% on a year-over-year basis. Analysts expect that United States Steel Corp. will post $-1.43 EPS for the current fiscal year.
United States Steel Corporation (NYSE:X) produces and sells steel mill products, including flat-rolled and tubular products, in North America and Europe.
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