NEW YORK (TheStreet) --U.S. Steel (X) was upgraded to "buy" from "hold" at Deutsche Bank (DB) this morning after the company's better than expected second quarter results and the Carnegie Way transformation, the company's latest adaptation of its business model in a competitive effort to be more sustainable and efficient.
The firm raised its price target on U.S. Steel shares to $40 from $28.
"Management expects third quarter 2014 results to improve significantly as operations normalize. Lack of weather related challenges to generate favorable impact of $150 million for U.S. flat-rolled segment. The company continues to make headway in its Carnegie Way program with new projects implemented in second quarter 2014 expected to drive additional benefits of $145 million ($435 million total) in 2014," analysts said.
U.S. Steel reported earnings of 17 cents per share, up from losses of 54 cents per share a year ago. Second quarter revenue was $4.4 billion.
Shares of U.S. Steel are currently up 0.81% to $33.71
TheStreet Ratings team rates UNITED STATES STEEL CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate UNITED STATES STEEL CORP (X) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, good cash flow from operations and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and generally higher debt management risk."