US Steel shares fall the most in 36 weeks on Tuesday, Credit Suisse downgrades stock to “Underperform”, slashes price target

Shares of United States Steel Corporation (X) registered their largest single-session loss in 36 weeks on Tuesday, after Credit Suisse revised down its rating on the stock from “Neutral” to “Underperform” and also slashed its 12-month price target from $21 to $13. The firm underscored that the US steel giant was “in a weaker competitive position” relative to its peers.

Shares of United States Steel Corp closed lower for a fourth consecutive trading session in New York on Tuesday. It has also been the steepest daily loss since August 2nd 2018. The stock went down 9.98% ($1.97) to $17.77, after touching an intraday low at $17.70, or a price level not seen since January 2nd ($17.64).

Shares of United States Steel Corporation have retreated 2.58% so far in 2019 compared with a 15.87% gain for the benchmark index, S&P Midcap 400 (MID).

In 2018, US Steel’s stock went down 48.17%, thus, it again underperformed the S&P Midcap 400, which registered a 12.50% loss.

According to a note by Credit Suisse analyst Curt Woodworth, EBITDA outlook for US Steel Corp is “highly concerning given still high lagged sheet prices and a significant raw material squeeze ahead for Europe.”

According to CNN Money, the 14 analysts, offering 12-month forecasts regarding US Steel Corp’s stock price, have a median target of $23.00, with a high estimate of $33.00 and a low estimate of $13.00. The median estimate represents a 29.43% upside compared to the closing price of $17.77 on April 9th.

The same media also reported that 11 out of 17 surveyed investment analysts had rated US Steel Corp’s stock as “Hold”, while 6 – as “Buy”.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for United States Steel Corporation (X) are presented as follows:

Central Pivot Point – $20.03
R1 – $20.34
R2 – $20.84
R3 – $21.15
R4 – $21.46

S1 – $19.53
S2 – $19.22
S3 – $18.72
S4 – $18.22