JPMorgan Sees U.S. Steel (X) As A Buying Opportunity

JPMorgan analyst, Michael Gambardella, reiterated his Overweight rating on shares of US Steel (NYSE: X) after the company offered strong EBITDA guidance of $400mm in 2Q and the midpoint of guidance implying EBITDA of nearly $1.1bn for the second half.

The analyst stated "We think market conditions will continue to remain supportive for steel prices in 2H18 and 2019 with the President’s actions on Section 232 and trade related matters. Using Friday’s closing price of $32.37, the stock is trading at 3.3x on X’s annualized run-rate EBITDA of $2.2bn, which is significantly below its long-term EBITDA multiple of 5.6x".

Despite the positive outlook on the company, the analyst also trimmed his price target to $67 from $69.

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 $32.37 yesterday.

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