For U.S. Steel (X), among the 12 analysts polled by Thomas Reuters on March 8, two recommended a “strong buy,” three recommended a “buy,” and 12 recommended a “hold.” U.S. Steel has received a mean consensus target price of $24.75, which represents a potential upside of 28.6% over its closing price on March 8.
U.S. Steel has seen a negative price action of 14.1% in March. However, the stock has risen 5.8% in 2019. Looking at other steel and iron ore names, AK Steel (AKS), Nucor (NUE), and Cleveland-Cliffs (CLF) have risen 16.0%, 11.5%, and 28.0%, respectively, year-to-date based on their closing prices on March 8.
Last month, Berenberg upgraded U.S. Steel from “hold” to “buy.” Berenberg raised its target price from $23 to $30. The brokerage lowered U.S. Steel’s target price in January. Analysts were quite bearish on U.S. Steel at the beginning of the year. After U.S. Steel’s earnings release, BMO and J.P. Morgan lowered the stock’s target price. J.P. Morgan has been bullish on U.S. Steel even though some of the other brokerages were turning bearish on the stock.
Jefferies downgraded U.S. Steel to “hold” and cut its target price from $27 to $24 on January 22. Credit Suisse also downgraded U.S. Steel from “outperform” to “neutral” and lowered its target price from $40 to $24. Goldman Sachs and Clarksons Platou Securities also lowered U.S. Steel’s target price in January.
U.S. Steel has fallen almost 20% from its 2019 highs. Next, we’ll discuss whether the stock could bounce back from these levels.