NEW YORK (TheStreet) -- United States Steel Corp. (X) shares are up 2.9% to $39.24 on heavy volume on Wednesday after being named Morgan Stanley's (MS) top pick in what the firm believes is an "attractive" steel industry.
U.S. Steel's price target was raised to $60 from $35 by analysts at the firm who maintained their "overweight" rating.
The firm cites improving demand and industry consolidation as two reasons among several for their upgraded industry outlook.
The company's upgraded price target represents a 53% upside from the stock's current price.
Separately, 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."