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US Steel (X) Price Target Raised to $60 at Deutsche Bank

September 17, 2014 2:41 PM EDT
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Price: $41.02 +0.81%

Rating Summary:
    8 Buy, 17 Hold, 6 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 6 | Down: 3 | New: 1
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Deutsche Bank maintained a Buy rating on US Steel (NYSE: X) and raised its price target to $60.00 (from $40.00). Analyst Jorge Beristain thinks the company is moving in the right direction.

"US Steel announced decision to scrap 2 raw material projects in the US and file Canada's Companies' Creditors Arrangement Act (CCAA) for its Canadian operations. As a result, US Steel will take a non-cash pre-tax charge of $550-600m ($3.68/share) in 3Q14. Separately, it has guided for considerable improvement across all its business segments and expects 3Q14 results (excl.one-offs) to be significantly higher than consensus ($0.89 on 9/16). We have updated our model to include recent announcements and now estimate 2014E EBITDA at $1.3bn (+18% vs prior) and 2015E EBITDA at $1.5bn (+7%). We lift PT from $40 to $60 based on ~7x (vs ~6x prior) 2015E EBITDA," said Beristain.

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 $41.41 yesterday.



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