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How Analysts See U.S. Steel Corporation in May

Mohit Oberoi, CFA - Author

Aug. 18 2020, Updated 6:15 a.m. ET


On May 9, U.S. Steel Corporation (X) received “strong buy” ratings from four analysts, and six analysts gave it a “buy” rating. Five analysts gave a “hold” or equivalent rating on the stock, and one analyst polled by Thomson Reuters on May 9 rated U.S. Steel as a “sell.”

U.S. Steel carries a mean consensus target price of $46.07, which represents a 31.8% upside over its closing price on May 9. In contrast, it carried a one-year target price of $47.73 on April 25—one day before its earnings release. Let’s see how analysts changed their ratings on U.S. Steel after its 1Q18 earnings release.

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Recent action

BMO cut U.S. Steel’s target price from $50.00 to $45.00 after its 1Q18 earnings release. Jefferies lowered U.S. Steel’s target price by $2.00 to $45.00. Cowen and Company also cut U.S. Steel’s target price from $41.00 to $37.00, and Citi lowered the stock’s target price from $46.00 to $42.00.

U.S. Steel posted better-than-expected earnings in 1Q18. Among the other steel companies (CLF), AK Steel (AKS), Nucor (NUE), and Steel Dynamics (STLD) also posted better-than-expected earnings in the quarter.

What led to the sell-off?

Although U.S. Steel posted better-than-expected 1Q18 earnings, its fiscal 2018 guidance may have spooked the markets. The company pointed to operational challenges amid its ongoing asset revitalization program. Please read U.S. Steel Corporation: Has the Storm Settled Down? to explore U.S. Steel’s outlook after the sell-off.


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