BofA/Merrill Lynch Upgrades US Steel (X) to Buy
- World shares ride earnings to fresh high, dollar steady
- Oil prices slip as Delta variant spread weighs
- Dollar trades near recent lows; kiwi climbs
- Sony (SONY) Tops Q1 Views on Robust PS5 Demand But Misses on Profit Guidance to Send Shares Lower, Analysts Cautious Over Chip Shortages
- Toyota (TM) Dips Despite a Record Profit As Chip Shortage Weighs on Outlook
Get inside Wall Street with StreetInsider Premium. Claim your 1-week free trial here.
(Updated - February 1, 2017 5:41 PM EST)
BofA/Merrill Lynch upgraded US Steel (NYSE: X) from Neutral to Buy with a PT of $40.
The analyst comments "Upgrading to Buy on stock pullback and better outlook. We upgrade U.S. Steel to Buy as we incorporate its $1.3B 2017E EBITDA guidance, up from our prior $1.1B and $1.2B consensus, and believe it provides attractive leverage to strong steel prices after a recent pullback. Management gave us confidence that further OCTG recovery upside was not incorporated in its guidance, and spoke positively about business conditions. Flowing through better-than-expected Q4 volumes and lighter met coal cost pressure than we expected ($19/t y/y vs our $30) drove our estimates up. We model average benchmark hot rolled coil (HRC) at $650/t for 2017E, and anticipate U.S. sheet volume up a modest 2% y/y as we expect domestic mills take share from imports. While we had been concerned over higher costs, we think U.S. Steel’s cost pressures are now known, and the pullback in shares provides an attractive entry point, in our view."
Shares of US Steel closed at $32.71 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- BofA Securities Sees 4 Reasons NVIDIA (NVDA) Stock Reaction Could Be Negative After Earnings; PT to $250
- ZoomInfo (ZI) Explodes on Strong Q2 Results and Guidance, Analysts Bulled Up with 10 PT Hikes
- UPDATE: Cowen Upgrades Capri Holdings (CPRI) to Outperform
Create E-mail Alert Related CategoriesAnalyst Comments, Hot Upgrades, Upgrades
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!