U.S. Steel (X) Stock Climbs, Credit Suisse: 'Very Undervalued'
24 September 2016
Shares of U.S. Steel (X) were rising in early afternoon trading on Friday as Credit Suisse reiterates an "outperform" rating and $29 price target on the stock.
The firm said that the Pittsburgh-based steel producer's stock is "very undervalued."
"We view the sharp pullback in the stock price on the widely anticipated hot rolled sheet correction as overdone," Credit Suisse noted.
"In or view U.S. Steel has significant upside potential into 2017 as conversion costs continue to fall," the firm added.
U.S. Steel could also see upsides as average selling prices increase in its annual contract business and oil country tubular goods prices move higher on falling inventories, Credit Suisse said.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "sell" with a ratings score of D.
The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity and poor profit margins.
Source : thestreet.com