Wall Street Analysts See Value Amidst Takeover Block and Share Drop

  • U.S. Steel shares down more than 20% after reports of blocked takeover by Nippon Steel
  • Wall Street analysts still see value in U.S. Steel’s shares despite recent drop
  • BMO analyst Katja Jancic reiterates Buy rating and $45 target for the price
  • Exane BNP Paribas analyst Tristan Gresser upgrades shares to Buy from Hold with a $40 price target
  • 55% of analysts covering U.S. Steel rate shares as Buy, average target at $42
  • U.S. Steel’s lower-cost electric arc furnace assets not adequately reflected in current valuations

Despite a 20% drop in U.S. Steel shares following reports of President Biden blocking the Nippon Steel takeover, Wall Street analysts maintain a positive outlook on the company’s value. BMO analyst Katja Jancic reiterated her Buy rating and $45 target, while Exane BNP Paribas analyst Tristan Gresser upgraded shares to Buy from Hold with a $40 price target. U.S. Steel’s lower-cost electric arc furnace assets are not adequately reflected in current valuations. With 55% of analysts covering the company rating shares as Buy and an average target at $42, the stock remains attractive despite recent challenges.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about U.S. Steel’s current situation, including recent stock performance, analyst opinions on the company’s value, and potential outcomes related to the Nippon deal. It also includes relevant background information on electric arc furnaces and steel prices.
Noise Level: 3
Noise Justification: The article provides relevant information on U.S. Steel’s current situation and its potential value despite recent setbacks. It includes insights from analysts and discusses the company’s prospects with or without the Nippon deal. However, it could benefit from more in-depth analysis of long-term trends and consequences for stakeholders.
Public Companies: United States Steel (X), Nucor (NUE)
Key People: David Burritt (CEO), Katja Jancic (Analyst at BMO), Tristan Gresser (Analyst at Exane BNP Paribas), Timna Tanners (Analyst at Wolfe Research), Joe Biden (President of the United States)

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Financial Relevance: Yes
Financial Markets Impacted: U.S. Steel shares and related steel industry stocks
Financial Rating Justification: The article discusses the impact of President Joe Biden potentially blocking a takeover deal on U.S. Steel’s shares, as well as analyst opinions on the company’s value and future prospects.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
Move Size: The market move size mentioned in this article is more than 20%.
Sector: Technology
Direction: Down
Magnitude: Large
Affected Instruments: Stocks

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