UPDATE: Deutsche Bank Upgrades United States Steel On Model Update

In a report published Monday, Deutsche Bank analyst Jorge Beristain upgraded the rating on

from Hold to Buy, and raised the price target from $28.00 to $40.00. In the report, Deutsche Bank noted, “We have updated our model to include US Steel's 2Q14 results and latest guidance. Management expects 3Q14 results to improve significantly as operations normalize. Lack of weather related challenges to generate favorable impact of $150m for US flat-rolled segment. Company continues to make headway in its Carnegie Way program with new projects implemented in 2Q14 expected to drive additional benefits of $145m ($435m total) in 2014. As a result, our 2014 EBITDA estimate now comes in at $1.1bn (+3% vs prior) and 2015E EBITDA at $1.4bn (+11%). Lifting PT from $28 to $40 based on ~6x (vs ~5x prior) 2015E EBITDA and upgrading from Hold to Buy.” United States Steel closed on Friday at $33.44.