UPDATE: Credit Suisse Upgrades United States Steel Corporation to Outperform, Raises PT
In a report published Wednesday, Credit Suisse Group upgraded its rating on United States Steel Corporation (NYSE: X) from Neutral to Outperform, and raised its price target from $20.00 to $30.00.
Credit Suisse noted, “We are upgrading our rating on the shares of United States Steel from Neutral to Outperform. We see a number of compelling industry and company specific datapoints which suggest that 4Q will prove the earnings trough, with an expected steel price recovery pushing the shares higher over the next 3 months. We are increasing our 12-month target price from $20 to $30, which represents 5.2x our 2014 EBITDA estimate. We raise our 2013 estimate from $1.48 to $1.72 and 2014 from $2.02 to $3.00. X is trading at a 22% discount to the group average and a 16% discount to its historical 1-year forward EBITDA of 5.6x.”
United States Steel Corporation closed on Monday at $23.87.
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