Market Overview

Newsflow Is Turning Positive For Steel Industry, US Steel

Share:
Newsflow Is Turning Positive For Steel Industry, US Steel
Related X
Lennar, Sarepta, US Steel, IWM: 'Fast Money' Picks For January 11
Benzinga's Top Upgrades, Downgrades For January 9, 2019

The steel industry could soon move much higher, according to Longbow Research analyst Chris Olin.

“Recent conversations with North American distributors levered to the energy markets suggest NT upside potential for the U.S. Steel (X) [United States Steel Corporation (NYSE: X)] Tubular Segment. Upward momentum for steel products used in drilling applications could get this segment back to breakeven before 2018, following 10–11 consecutive quarters of negative EBIT results,” Olin wrote.

This led Olin to remain bullish on shares of U.S. Steel, rating the company a Buy with a price target of $30.

tipranks.png

3 Catalyst That Could Drive 2018 EPS Much Higher

    1. A positive Section 232 remedy.
    2. Increase in Chinese steel and iron ore price.
    3. Less headwinds for metal companies who are exposed to energy demand.

Reasons To Be Bullish

  • Demand for oil country tubular goods remains very strong.
  • Distributions still want to build inventories.
  • Tubular pricing is up 40 percent since December of 2016.

While the medium-term outlook seems to be slightly less certain, it is evident even as crude oil and natural gas prices fall, Olin still sees demand for metals products.

Related News:

Citi Previews Steel Sector Earnings, Says US Steel May Outperform

Reliance Steel & Aluminum Co. to Announce Second Quarter 2017 Results on Thursday, July 27th

Latest Ratings for X

DateFirmActionFromTo
Jan 2019CitigroupDowngradesBuyNeutral
Jan 2019Cowen & Co.Initiates Coverage OnMarket Perform
Jan 2019Credit SuisseDowngradesOutperformNeutral

View More Analyst Ratings for X
View the Latest Analyst Ratings

Posted-In: Analyst Color Long Ideas News Commodities Reiteration Markets Analyst Ratings Trading Ideas Best of Benzinga

 

Related Articles (X)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
AITKeyBancUpgrades0.0
MDCitigroupUpgrades0.0
PUMPBarclaysUpgrades20.0
ECPGOppenheimerUpgrades37.0
RACEBernsteinUpgrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
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.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Mid-Morning Market Update: Markets Edge Higher; Delta Air Lines Profit Misses Expectations

Set Yellen On Repeat: Fed Chair Back On Capitol Hill After Stocks Rise To Record Highs