US Steel's Trump-Tariff Gains Melt Away As Stock Sinks On Downgrade – Investor's Business Daily

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United States Steel (X) shed some of its tariff-related gains after an analyst downgraded the stock over its latest guidance.

The stock closed down 7.6% to 40.24 on the stock market today, crashing through its 50-day-average line, a key technical support. Steel Dynamics (STLD) finished 0.55% higher, AK Steel (AKS) fell 3.2%, and Nucor (NUE) dipped 0.2%

The price movement came after Vertical Group analyst Gordon Johnson downgraded U.S. Steel to sell from hold and slashed the price target to 23 from 41.

While U.S. Steel raised its 2018 cash-flow guidance to $1.7 billion from a prior view of $1.5 billion, Johnson argued that the guidance would’ve actually been cut if it had not been for the Trump steel tariffs and expected their guidance to come in much higher.

Johnson also said the company has some of the most inefficient mills in the country, and that America should be looking to cut capacity.


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