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Shares of United States Steel Corporation (NYSE: X) have declined 71.5 percent over the past year, almost touching their 52-week low on Wednesday at $6.67.
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Argus’ David Coleman has downgraded the rating on the company to Hold.
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The downgrade is based on the weak outlook for 2016, with Coleman expecting the company to continue to face challenges through the year.
Analyst David Coleman believes that the shares “could fall toward $4 if commodity prices continue to trend lower over the next few months.”
United States Steel reported adjusted net loss of $33 million or $0.23 per share, meaningfully below the adjusted net profit reported for the year-ago quarter.
The company’s shares have been range bound over the past year between $6 and $27 and are currently trading near the bottom of this range.
“From a technical standpoint, the shares are in a bearish pattern of lower highs and lower lows that dates to September 2014, and that has tracked the free fall in commodity prices during this period,” Coleman noted.
Going forward, the stock is expected to follow the commodity price trends, which are yet to stabilize. If commodity prices trend lower, the share price could decline towards $4 but if commodity prices were to stabilize, the stock could move back toward the $8-$10 range.
Latest Ratings for X
Date | Firm | Action | From | To |
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Jan 2016 | Argus Research | Downgrades | Buy | Hold | Jan 2016 | BMO Capital | Maintains | | Market Perform | Jan 2016 | Jefferies | Maintains | | Hold |
View More Analyst Ratings for X
View the Latest Analyst Ratings
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United States Steel Corporation
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CODE : X |
ISIN : US9129091081 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
United States Steel est une société de production minière de fer et de étain basée aux Etats-Unis D'Amerique. United States Steel est cotée aux Etats-Unis D'Amerique. Sa capitalisation boursière aujourd'hui est 6,4 milliards US$ (5,7 milliards €). La valeur de son action a atteint son plus bas niveau récent le 28 mars 2003 à 10,01 US$, et son plus haut niveau récent le 30 novembre 2007 à 98,85 US$. United States Steel possède 176 184 431 actions en circulation. |