UPDATE: Bank of America Reiterates Underperform Rating, Lowers PT on United States Steel Corporation on OCTG Headwinds

In a report published Thursday, Bank of America analyst Timna Tanners reiterated an Underperform rating on

, but lowered the price target from $32.00 to $29.00. In the report, Bank of America noted, “U.S. Steel's exposure to slumping oil markets has clearly been weighing on the stock, down with WTI's ~14% drop since Thanksgiving's surprise OPEC announcement to not cut output. Oil country tubular good (OCTG) volumes are most exposed to any drop in E&P spending, and represented 86% of X's 2013 Tubular segment shipments. Tubular EBIT was $190M or 48% of total in 2013, and we drop our 2015E view to $211M from $335M on the assumption margins are squeezed amid an imminent customer destocking sparked by less drilling, sustained high imports, and new U.S. capacity starting. X's Tubular business is 50% spot and 50% ‘program'.” United States Steel Corporation closed on Wednesday at $29.08.