US Steel Transformation Will Lead To Major Value Creation, Says Bullish Analyst
Portfolio Pulse from Priya Nigam
United States Steel Corporation (NYSE:X) is undergoing a transformation, expanding its EAF capabilities and downstream offerings, according to Morgan Stanley analyst Carlos De Alba. De Alba upgraded the rating for US Steel from Equal-Weight to Overweight and raised the price target from $25 to $40. The company's new 3.0mtpa Big River 2 mini mill is expected to come online in 2024, which will nearly double its EAF steelmaking capabilities. US Steel is also increasing its presence in downstream products.
October 02, 2023 | 4:30 pm
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Cleveland-Cliffs Inc. (NYSE:CLF) is reportedly involved in a dispute with US Steel over a confidentiality agreement after receiving an offer to acquire the company.
The dispute between Cleveland-Cliffs Inc. and US Steel over a confidentiality agreement could potentially have a negative impact on the stock price of Cleveland-Cliffs Inc. The uncertainty surrounding the dispute could lead to investor caution.
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POSITIVE IMPACT
US Steel is undergoing a transformation that includes expanding its EAF capabilities and downstream offerings. This has led to an upgrade in rating from Morgan Stanley analyst Carlos De Alba, who also raised the price target for the company.
The transformation of US Steel, including the expansion of its EAF capabilities and downstream offerings, is seen as a positive move by Morgan Stanley analyst Carlos De Alba. This has led to an upgrade in the company's rating and an increase in its price target, which could potentially lead to an increase in the company's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100