- BMO Capital analyst David Gagliano lowered the price target on United States Steel Corp X to $23 (an upside of 15.5%) from $30 while maintaining the Market Perform rating on the shares.
- X provided its 'mid-quarter' update yesterday and mentioned that it expects 2Q22 EBITDA of $1.6 billion, vs. BMO/FactSet consensus of $1.5 billion.
- Related: United States Steel Stock Gains On Strong Q2 Outlook
- The analyst states that this update has no major surprises, considering other better-than-expected steel-related guides/releases since yesterday morning.
- However, given the recent significant weakness in X shares and continued weakness in underlying spot prices, this update may be well-received initially, Gagliano adds.
- Credit Suisse analyst Curt Woodworth lowered United States Steel's price target to $44 (an upside of 121%) from $49 while maintaining the Outperform rating on the shares.
- The analyst states that the company provided a better-than-expected mid-quarter update. The EPS beat vs. Credit Suisse estimates and was mainly driven by higher-than-expected share buyback during the quarter ($320 million quarter to date).
- The company provided segment guidance implying strong near-term demand with higher q/q volumes in US Flat Roll and Mini-mill segment and improved margins at USSE / Tubular, mentions Woodworth.
- The analyst continues to view US Steel as the most undervalued steel company in his coverage universe and believes structural transformation to the balance sheet and quality of the asset base remains underappreciated by investors.
- Price Action: X shares are trading higher by 1.79% at $19.93 on the last check Friday.
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