UPDATE: Deutsche Bank Downgrades United States Steel Corporation on Valuation

In a report published Wednesday, Deutsche Bank analyst David S. Martin downgraded the rating on

from Buy to Hold, but raised the price target from $22.00 to $26.00. In the report, Deutsche Bank noted, “X 3Q was b-t-e but the outlook was weaker while the steel market trends above forecast. Corporate initiatives announced are + and its shares have now risen ~45% in 6 mths partially in anticipation of the moves. Other + factors are HRC prices, pension benefits & trade cases. We believe these & further cost initiatives are understood or priced-in. A risk to our downgrade is that HRC rises in the s-t (scrap) and we acknowledge it's a 'tough time' of year to downgrade but current steel prices aren't sustainable and again are priced-in. X trades at 7x '14 EBITDA est of $1.b (+34%) while supply issues persist & inflation has eased. So, we downgrade to Hold & prefer STLD & MT.” United States Steel Corporation closed on Tuesday at $25.47.