BUZZ-US Steel falls after BMO lowers rating on valuation

Reuters
31 Mar
BUZZ-US Steel falls after BMO lowers rating on valuation

** United States Steel's shares X.N fall 1.5% to $42.37 premarket

** BMO downgrades to "market perform" from "outperform", says current share price nearing fair fundamental value

** "(U.S. Steel- Nippon Steel deal) uncertainty, in our opinion, is too great at this point to maintain an Outperform recommendation solely based on the premise the transaction is completed," BMO says

** Brokerage maintains PT of $45, representing 4.7% upside to stock's last close

** However, BMO increases its 2025/2026 EBITDA estimates for U.S. Steel on higher assumed underlying steel prices

** Two brokerages rate the stock "buy", five "hold" and five "sell"; their median PT is $41.50 - LSEG compiled data

** As of last close, stock had risen 26.5% YTD

(Reporting by Aatreyee Dasgupta)

((Aatreyee.Dasgupta@thomsonreuters.com))

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