Cleveland-Cliffs shares rise while U.S. Steel faces uncertainty

  • J.P. Morgan recommends buying Cleveland-Cliffs stock
  • Analyst Bill Peterson sees too much deal risk for U.S. Steel
  • Cleveland-Cliffs shares up 1% in premarket trading, U.S. Steel stock down 0.8%
  • Cleveland-Cliffs bid for U.S. Steel accepted an all-cash bid of $55 a share from Nippon Steel
  • Concerns about U.S. regulators preventing the deal
  • Peterson reinstates a Hold rating on U.S. Steel stock with a $47 price target
  • Cliffs expected to generate ample cash and focus on returning cash to shareholders
  • Wall Street sees Cliffs generating about $1.4 billion in free cash flow a year
  • Average analyst price target for Cliffs is $20 a share, while U.S. Steel is $42

Shares of steel maker Cleveland-Cliffs are recommended for purchase by J.P. Morgan, while United States Steel stock is seen as risky due to deal uncertainty. Cleveland-Cliffs’ shares have risen 1% in premarket trading, while U.S. Steel stock has fallen 0.8%. Cleveland-Cliffs had previously attempted to purchase U.S. Steel, but the latter accepted an all-cash bid from Nippon Steel. Concerns about U.S. regulators preventing the deal have caused uncertainty for U.S. Steel stock. Analyst Bill Peterson has reinstated a Hold rating on U.S. Steel stock with a $47 price target. On the other hand, Peterson believes that Cleveland-Cliffs will generate ample cash and focus on returning cash to shareholders. Wall Street predicts that Cliffs will generate about $1.4 billion in free cash flow annually. The average analyst price target for Cliffs is $20 a share, while U.S. Steel is $42.

Public Companies: Cleveland-Cliffs (CLF), United States Steel (X), Nippon Steel Corporation (N/A)
Private Companies:
Key People: Bill Peterson (Analyst), Donald Trump (Former President)

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Factuality Level: 7
Justification: The article provides information about the stock performance of Cleveland-Cliffs and United States Steel, as well as the analyst ratings and price targets for both stocks. The information seems to be based on factual data and quotes from analysts. However, there is some speculation and opinion presented, such as the analyst’s view on the likelihood of the deal between U.S. Steel and Nippon Steel going through. Overall, the article provides a mix of factual information and subjective analysis.

Noise Level: 3
Justification: The article provides information on the stock performance of Cleveland-Cliffs and U.S. Steel, as well as the analyst ratings and price targets. However, there is a lack of in-depth analysis or insights into the long-term trends or consequences of the deals. The article also includes some irrelevant information about the market capitalization of U.S. Steel and Nippon Steel’s ownership. Overall, the article contains some noise and filler content, but it stays on topic and provides basic information.

Financial Relevance: Yes
Financial Markets Impacted: Steel industry

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the impact of J.P. Morgan’s recommendation to buy Cleveland-Cliffs stock and the deal risk associated with United States Steel. While there is no extreme event mentioned, the information provided is relevant to the financial markets and companies in the steel industry.

Reported publicly: www.marketwatch.com