NEW YORK (TheStreet) -- U.S Steel (X) - Get Report announced 2016 second quarter results earlier this week, posting a narrower-than-expected loss, and Deutsche Bank has raised its price target on the stock.
The company reported a 31 cent-loss per share, higher than estimates of a 49 cent-loss. However, revenue for the period dropped 11% year-over-year to $2.58 billion. Wall Street had expected $2.68 billion.
In its analyst note, Deutsche Bank upped its price target on the stock to $23 from $15.
The firm is still concerned about the downside that could result from lower steel prices, despite the earnings beat.
It mentioned that by the fourth quarter, there will be renewed import pressure attracted by a stronger U.S. dollar. Other risks include a decline in domestic scrap prices, seasonal slowdown and possible push back from automotive manufacturers.
Shares of U.S. steel closed up 2.19% to $27.49 on Friday.
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. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. 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.
You can view the full analysis from the report here: X