UPDATE: Goldman Sachs Upgrades United States Steel on Benefit from Steel Leverage, Restructuring

In a report published Monday, Goldman Sachs analyst Sal Tharani upgraded the rating on United States Steel X from Sell to Buy, and raised the price target from $22.00 to $30.00. In the report, Goldman Sachs noted, “We upgrade X to Buy from Sell, as we believe it will see the most likely benefit of improving fat rolled steel market due to its highest leverage to this product, as well as from Project Carnegie initiatives. In our view, US Steel is perhaps the highest cost steel producer in the US, considering its significantly better cost positioning due to integrated iron ore supply for its North American operations. We raise our 6-month P/E-, EV/EBITDA-, and M&A-based price target to $30 from $22, implying 16% upside potential, as we update our methodology to include a 50% weighting on normalized (mid-cycle) estimates and a 50% weighing on 2014 estimates.” United States Steel closed on Friday at $25.78.