Jeffries Downgrades United States Steel (X) to Hold, Lifts PT

On Monday, May 26, Jeffrey Chris Lavimina analyst reduced his classification on the United States Steel Corp (NYSE: X) to keep it after president Trump agreed to a possible partnership between the company and the Nippon Steel Company (OTC: NPSCY). LaFEMINA also raised its target price from $ 50 to $ 55, which is the price that NIPPON agreed to pay in the event of a full acquisition.

The price of the US Steel share increased by 21 % on Friday, May 23, as the market seems to be already taught in a possible acquisition by Nippon. However, LaFEMINA believes that the details of the agreement remain mysterious, and it finds that it is wise to stay on the sidelines until more details are confirmed. He also pointed out that the deal can take a complex partnership structure, and may provide much lower value to shareholders from complete integration. His conservative position appears to have what justifies him, given that the stocks have already approached the offer, and the upward trend appears to be limited.

Steel coil is loaded in a facility for more processing and distribution.

It should be noted that the original deal dates back to December 18, 2023, when Nippon Steel announced its approval to obtain Steel United State in the AllCash deal at a price of $ 55 per share. The offer represents a premium of 40 % and the company is estimated at a total rate of $ 14.9 billion.

At that time, the treatment was expected to be closed by Q3 2024 after the necessary approvals. However, the Biden administration prevented it due to national security concerns and the pressure of trade unions.

The deal is now expected to generate at least 70,000 jobs and local investment of $ 14 billion. President Trump is scheduled to visit the United States Pittsburgh factory on May 30, when more details of the deal can appear.

The United States Steel Corporation (NYSE: X) is a pioneering steel company with operations in the United States of America and Central Europe. The annual crude steel production capacity is 25.4 million tons (20.4 million tons in North America and 5.0 million tons in Europe).

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Detection: Nothing.