Analysts bullish on US steel industry

Aug 26, 2014 | 04:05 PM | Nat Rudarakanchana

Tags  U.S. Steel, Mario Longhi, Goldman Sachs Group, Credit Suisse Group, ArcelorMittal, Cowen & Co., steel plate, flat-rolled steel direct-reduced iron

NEW YORK — Wall Street analysts have turned upbeat on prospects for the U.S. steel sector, highlighting U.S. Steel Corp. and ArcelorMittal SA as promising picks due partly to better pricing trends.

Pittsburgh-based U.S. Steel could become one of the most profitable North American steelmakers vs. one of the least profitable currently if it expands into direct-reduced iron and more electric-arc furnace business, analysts at Zurich-based Credit Suisse Group AG said in a note.

U.S. Steel’s price target has been doubled to $50 per share and its rating adjusted to "outperfom" from "underperform," Credit Suisse said. "Implementation is complicated, but success could mean a multibillion-dollar earnings opportunity. ... We are backing (chief executive officer) Mario Longhi on execution."....

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