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KeyBanc Raises Price Target on US Steel (X) to Go Inline With New Estimates

February 1, 2012 8:57 AM EST
X Hot Sheet
Rating Summary:
    5 Buy, 7 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 20 | Down: 11 | New: 38
KeyBanc is reiterating its Buy rating on share of US Steel (NYSE: X) and is raising its price target from $35 to $40 following the release of its Q4 results.

The firm noted it has raised its Q1 and FY12 EPS estimates due to the absence of operating losses from the Company's recently divested Serbian mill and improved profitability at NA Flat Rolled, which is driven by volume upside and cost momentum.

For Q1 and FY12, KeyBanc raised its EPS estimates from $0.36 and $2.00 to $0.47 and $3.30.

An analyst at KeyBanc comments, "Following the divestiture of the Serbian operations, we believe the Company has positively shifted investor focus away from recent operational inconsistency back toward a focus on immediate improvement to shareholder value. Historically, the Slovakian mill that United States Steel retained has generated far more profitable and stable levels of EBIT than the divested Serbian operation, which should make future company-wide profitability more predictable in the future; a development that should be greeted positively by most investors."

For an analyst ratings summary and ratings history on US Steel click here. For more ratings news on US Steel click here.

Shares of US Steel closed at $30.19 yesterday, with a 52 week range of $18.85-$64.03.


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