Nomura Securities Raises Estimates on US Steel (X); Sheet Market Hits Inflection Point
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Price: $54.84 --0%
Rating Summary:
9 Buy, 17 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
9 Buy, 17 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Buy' on US Steel (NYSE: X) price target of $32.00.
Analyst, Curt Woodworth, said, "We believe U.S. Steel shares have significant upside over the next quarter as U.S. sheet prices rebound from current depressed levels, scrap prices recover, and end demand conditions remain solid, especially in the key automotive market for X. In this report we outline our rationale for a short-term rally in HRC prices, which we believe will play out over the coming months as the recent combination of destocking and seasonal weakness comes to an end. We estimate that U.S. flat rolled mills have been running near 37mt run-rate of production during 2012 on a capacity base of 45mt, suggesting utilization of 82% YTD. If we assume demand trends remain stable and remove the 5-6mt of capacity from RG Steel, the implied utilization figure would increase to 93-95%."
3Q12E EPS from n/a to $0.25; F12E EPS from $1.35 to $2.05; F13E EPS at $3.30.
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 $20.65 yesterday.
Analyst, Curt Woodworth, said, "We believe U.S. Steel shares have significant upside over the next quarter as U.S. sheet prices rebound from current depressed levels, scrap prices recover, and end demand conditions remain solid, especially in the key automotive market for X. In this report we outline our rationale for a short-term rally in HRC prices, which we believe will play out over the coming months as the recent combination of destocking and seasonal weakness comes to an end. We estimate that U.S. flat rolled mills have been running near 37mt run-rate of production during 2012 on a capacity base of 45mt, suggesting utilization of 82% YTD. If we assume demand trends remain stable and remove the 5-6mt of capacity from RG Steel, the implied utilization figure would increase to 93-95%."
3Q12E EPS from n/a to $0.25; F12E EPS from $1.35 to $2.05; F13E EPS at $3.30.
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 $20.65 yesterday.
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