UBS Reiterates a 'Buy' on US Steel (X); Poised from Strong 2012

UBS reiterates a 'Buy' on US Steel (NYSE: X) price target raised from $38 to $47.

UBS analyst says, "Strong steel demand, lower y/y costs, and improving prices give a significant benefit to financially and operationally levered X. We identify seven key cost savings X will realize in 2012, that when combined with better operating leverage, gives us high conviction in our above cons. 2012 EPS estimates...U.S. Steel has significant exposure to NatGas and has enough exposure to spot pricing to realize consequential savings...European operations will see strong y/y improvement as loss-making Serbian assets were shed, leaving only higher quality Slovakian operations."

UBS maintains FY12 EPS estimate at $3.52 and FY13 at $4.62.

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 $29.75 yesterday.

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