United States Steel Receives a Hold from Deutsche Bank

By George MacDonald

Deutsche Bank analyst Jorge Beristain reiterated a Hold rating on United States Steel (NYSE: X) on July 29 and set a price target of $23. The company’s shares closed last Friday at $27.49, close to its 52-week high of $27.64.

According to TipRanks.com, Beristain is ranked 0 out of 5 stars with an average return of -10.4% and a 42.7% success rate. Beristain covers the Basic Materials sector, focusing on stocks such as Kaiser Aluminum Corp., Hecla Mining Company, and Peabody Energy Corp.

Currently, the analyst consensus on United States Steel is Hold and the average price target is $5, representing a -81.8% downside.

In a report issued on July 26, Morgan Stanley also maintained a Hold rating on the stock with a $19 price target.

Based on United States Steel`s latest earnings report from March 31, the company posted quarterly revenue of $2.34B and quarterly net profit of -$340M. In comparison, last year the company earned revenue of $2.9B and had a net profit of -$261M.

Based on the recent corporate insider activity of 51 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of X in relation to earlier this year. Most recently, in February 2015, David Burritt, a the EVP & CFO of X bought 40,083 shares for a total of $998,039.

United States Steel Corp. is an integrated steel producer of flat-rolled and tubular products with production operations in North America and Europe. It operates through the following segments: Flat-Rolled Products, U.S. Steel Europe and Tubular Products. The Flat-Rolled Products segment is engaged in the production of slabs, rounds, strip mill plates, sheets and tin mill products, as well as all iron ore and coke production facilities in the United States and Canada. This segment primarily serves North American customers in the service center, conversion, transportation, construction, container, and appliance and electrical markets. Its steel rounds and a portion of the hot-rolled sheets are supplied to the Tubular segment. The U.S. Steel Europe segment produces and sells slabs, sheets, strip mill plates, tin mill products and spiral welded pipes, as well as heating radiators and refractory ceramic materials. This segment serves customers in the European construction, service center, conversion, container, transportation, appliance and electrical, and oil, gas and petrochemical markets. The Tubular segment produces and sells seamless and electric resistance welded steel casing and tubing, standard and line pipe and mechanical tubing. This segment primarily serves customers in the oil, gas and petrochemical markets. It is also engaged in the real estate operations and transportation services, including railroad and barge operations. United States Steel was founded in 1901 by Andrew Carnegie, John Pierpont Morgan, Charles Michael Schwab and Elbert Henry Gary and is headquartered in Pittsburgh, PA.