United States Steel Corporation (X) stock was down Monday following a downgrade at Jefferies.
Analysts at Jefferies have downgraded United Steel from a “Hold” rating to an “Underperform” and set a new target price for the stock at $10. It suggested that investors should turn their attention to AK Steel Holding Corporation (AKS) instead.
Jefferies’ decision to downgrade X stock was made after the company saw its stock start to gain due to a recovering demand and seasonal restocking. It fears the momentum won’t last. It also downgraded Reliance Steel & Aluminum Co (RS), Commercial Metals Company (CMC) and Olympic Steel, Inc. (ZEUS) from a “Buy” rating to a “Hold” rating, reports Seeking Alpha.
Another reason that Jefferies downgraded United Steel is that it expects steel prices to decrease during the summer. It also noted that AKS earnings per shares have increased by 110% year-over-year, while X hasn’t been profitable for the last four quarters, The Country Caller notes.
X shares were down 4% as of Noon Monday.
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