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U.S. Steel started at Outperform at Macquarie on resilient pricing, earnings

Published 09/07/2017, 12:27 PM
© Reuters.  U.S. Steel started at Outperform at Macquarie on resilient pricing, earnings
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  • U.S. Steel (X +0.4%), AK Steel (AKS +2%) and Reliance Steel (RS -1.3%) are initiated with Outperform ratings at Macquarie, which argues that the steel price outlook has stabilized and "don’t believe prices will plunge to the lows seen in the previous cycle, as inventories and lead times remain supportive."
  • Macquarie thinks near-term steel prices (SLX) likely will decline only modestly due to the delay of Section 232 investigation and uncertainties on demand outlook.
  • The firm also initiates Nucor (NUE -1.9%) and Schnitzer Steel (SCHN -1.1%) at Neutral, and starts Commercial Metals (CMC -1.6%) with an Underperform rating.
  • Now read: Reliance Steel & Aluminum Is Inexpensive In An Expensive Market


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