United States Steel (X – Research Report), the Basic Materials sector company, was revisited by a Wall Street analyst today. Analyst Chris LaFemina from Jefferies downgraded the rating on the stock to a Hold and gave it a $55.00 price target.
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Chris LaFemina’s rating is based on the recent developments involving a potential partnership between US Steel and Nippon Steel. The announcement by President Trump regarding this partnership led to a significant market reaction, with US Steel’s stock price rallying by 21%. Despite the positive market response, the details of the agreement remain unclear, prompting a cautious approach.
LaFemina raised the price target for US Steel to $55 per share, aligning with the market’s anticipation of a potential full takeover by Nippon. However, due to the uncertainties surrounding the specifics of the deal and its implications, he downgraded the stock from a Buy to a Hold. The potential for a complex partnership structure could result in less value for shareholders, warranting a more conservative stance.
According to TipRanks, LaFemina is a 4-star analyst with an average return of 3.7% and a 47.29% success rate. LaFemina covers the Basic Materials sector, focusing on stocks such as First Quantum Minerals, Freeport-McMoRan, and Steel Dynamics.