Market Overview

Axiom Capital Sees Challenges Ahead For United States Steel Corporation


In a report published Tuesday, Axiom Capital analyst Gordon L. Johnson II reiterated a Sell rating and $21.00 price target on United States Steel Corporation (NYSE: X).

In the report, Axiom Capital noted, “While we believe many pundits see $1/shr in quarterly earnings for X as sustainable (or $4/yr in annual earnings × a 10x P/E multiple, justifying today's ~$40/shr stock price), should HRC prices fall back below $620/s. ton, we believe X would once again be at/below break-even on the bottom line; more specifically, with: (a.) inventories spiking (MSCI + steel mill inventories), (b.) scrap prices plummeting recently (increasing the competitiveness of the mini mills), (c.) imports into the U.S. rising to near all-time record levels, exacerbated by (d.) the increasingly bleak prospect of a U.S. trade case against foreign HRC producers (driving HRC imports higher), as well as our discussions w/ industry experts during our attendance at the 9/18 American Steel Distributors (ASD) meeting, we see HRC spot prices falling back to ~$620/s. ton by year-end ‘14; resultantly, we see X as among the better shorts in our metals & mining universe on the aforementioned trends.”

United States Steel Corporation closed on Monday at $40.63.

Latest Ratings for X

Nov 2019MaintainsBuy
Nov 2019DowngradesBuyHold
Oct 2019DowngradesBuyHold

View More Analyst Ratings for X
View the Latest Analyst Ratings

Posted-In: axiom capital Gordon L. Johnson IIAnalyst Color Reiteration Analyst Ratings


Related Articles (X)

View Comments and Join the Discussion!

Latest Ratings

PFSWLake StreetUpgrades
WMGIWells FargoMaintains30.8
WLLWells FargoMaintains8.0
VNOMWells FargoMaintains36.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Printing With Metal May Be The Key To Growth For 3D Printing Stocks

Traders Have Seen This Movie Before