U.S. Steel (X) Stock Gains as Credit Suisse Ups Price Target

U.S. Steel (X) stock can gain 38%, Credit Suisse says.
By Rachel Aldrich ,

NEW YORK (TheStreet) -- Shares of United States Steel (X) - Get Report  closed up 3.12% to $21.16 this afternoon as Credit Suisse raised its price target on the stock to $29 from $26, saying the company's 2016 second quarter will "mark a clear inflection point for integrated cash costs," according to a note cited by Barron's.

U.S. Steel is scheduled to report 2016 second quarter earnings on Tuesday, July 26 after the market close, and analysts' estimate the company will post a loss of 50 cents per share and revenue of $2.67 billion.

However, Credit Suisse analysts argue that domestic integrated steel mills have made "substantive" improvements to their cost bases in recent years, a gain which has been largely masked by "very weak" utilization rates.

"We are increasing estimates to reflect better conversion costs," the firm said.

U.S. Steel is a Pittsburgh-based integrated steel producer.

Separately, 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 deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share.

You can view the full analysis from the report here: X

Recently, 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.

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