Goldman Sachs Downgrades US Steel (X) to Sell, Says Street Numbers Need To Come Down

Goldman Sachs downgraded US Steel (NYSE: X) from Neutral to Sell with a price target of $20 (down from $30) saying weak fundamentals are not reflected in the consensus.

"We believe that 2H-2011 consensus estimates for X are too high and company’s qualitative guidance for 4Q will disappoint the market, driving the stock down," the analyst stated. Also, 2012 Street estimates look too optimistic and they see this coming down.

Simply put, the current share price does not fully reflect the near-term downward pressure on steel prices as supply continues to exceed demand in the US, the firm explains.

For more ratings news on US Steel click here and for the rating history of US Steel click here.

Shares of US Steel closed at $22.98 yesterday.

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