Why We’re Revising Our Price Estimate For U.S. Steel From $9 To $15
We are raising our price estimate for U.S. Steel by 69%, which is primarily driven by three factors. The prospects of the U.S. Flat-rolled division (which accounts for around 70% of the company’s revenue) have improved as a result of the imposition of anti-dumping duties on Chinese steel imports into the U.S., resulting in a 25% increase in the division’s valuation vis-a-vis our previous estimate. The success of the company’s cost reduction initiatives have propped up the margins of the company’s European Flat-rolled & Tubular division, prompting us to revise upwards the division’s margin forecasts, boosting its valuation by 38%. Lastly, a reduction in the company’s net debt has also boosted our estimate of U.S. Steel’s stock price, as illustrated below:
- Can U.S. Steel Stock Return To Pre-Inflation Shock Highs?
- What’s Happening With U.S. Steel Stock?
- Will U.S. Steel Stock Continue To Outperform Despite Economic Headwinds?
- Is U.S. Steel Set For Tough Q3 Results?
- Why We Are Cutting Our Price Estimate For U.S. Steel Stock
- How Will U.S. Steel Stock Fare In An Uncertain Economy?
Have more questions about U.S. Steel? See the links below.
- What Is U.S. Steel’s Revenue And EBITDA Breakdown?
- What Is U.S. Steel’s Fundamental Value Based On Expected 2015 Results?
- How Has U.S. Steel’s Revenue Composition Changed Over The Last 5 Years?
- By What Percentage Did U.S. Steel’s Revenue & EBITDA Change In The Last 5 Years?
- By What Percentage Can U.S. Steel’s Revenue & EBITDA Grow In The Next 3 Years?
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