Nomura Securities Maintains a 'Buy' on US Steel (X); Q1 Results Help Set Up Strong 2012
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Price: $37.17 +1.56%
Rating Summary:
9 Buy, 17 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
9 Buy, 17 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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Nomura Securities maintains a 'Buy' on US Steel (NYSE: X) price target of $40.00.
Analyst, Curt Woodworth, said, "Utilization rates continue their slow grind higher, reaching 81% in the U.S. last week with sheet utilization rates estimated near 86-87%, a solid level. U.S. Steel is starting to see the unit cost benefits from much better volume levels and cost benefits from increased natural gas usage and lower coke usage rates, eliminating the need to buy expensive merchant coke. The strong 1Q EPS result of $0.67 (50% above Street est.), highlights the earnings power for X, in what we term a "price less" steel recovery. By that we mean, the industry has experienced limited to no price recovery above cost despite solid volume performance. We believe X is undervalued, trading at only 4.7x 2013 pension-adjusted EV/EBITDA and FCF yield of 3.1%. No change to 2012 or 2013 EPS estimates."
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 $27.65 yesterday.
Analyst, Curt Woodworth, said, "Utilization rates continue their slow grind higher, reaching 81% in the U.S. last week with sheet utilization rates estimated near 86-87%, a solid level. U.S. Steel is starting to see the unit cost benefits from much better volume levels and cost benefits from increased natural gas usage and lower coke usage rates, eliminating the need to buy expensive merchant coke. The strong 1Q EPS result of $0.67 (50% above Street est.), highlights the earnings power for X, in what we term a "price less" steel recovery. By that we mean, the industry has experienced limited to no price recovery above cost despite solid volume performance. We believe X is undervalued, trading at only 4.7x 2013 pension-adjusted EV/EBITDA and FCF yield of 3.1%. No change to 2012 or 2013 EPS estimates."
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 $27.65 yesterday.
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