U.S. Steel price target lowered to $40 from $43 at JPMorgan

JPMorgan lowered the firm’s price target on U.S. Steel to $40 from $43 and keeps a Neutral rating on the shares. The firm reduced its steel pricing outlook on increasing supply and overhangs from interest rates and the election. It anticipates Q2 results in-line to above “conservative” mid-quarter guides for companies that provided and likely below consensus for companies didn’t, saying Q2 demand and pricing “eased meaningfully.” Given “weaker-than-usual” seasonal activity with buyers in a “holding pattern,” the analyst anticipates “downbeat” Q3 comments from the North American steel companies. While JPMorgan feels stocks are largely bottoming, it is not expecting a strong bounce back.