Key Takeaways:
- The potential acquisition of US Steel (X, Financial) by Nippon Steel (OTCPK:NPSCY) faces opposition from the United Steelworkers union.
- Analysts offer mixed predictions with a slight upside potential for US Steel's stock.
- GuruFocus metrics suggest that US Steel may be overvalued based on historical trends.
Union Resistance to Nippon Steel's Acquisition Effort
The United Steelworkers union is standing firmly against Nippon Steel's (OTCPK:NPSCY) proposed acquisition of US Steel (X). Under the leadership of President David McCall, the union has voiced significant concerns about the deal, particularly regarding global market overcapacity and the potential divestiture of US assets. The proposal gained further attention when President Biden rejected it, highlighting the deal's contentious nature in the current political climate.
Wall Street Analysts' Insights
According to projections from 8 prominent analysts, the one-year price target for United States Steel Corp (X, Financial) hovers around an average of $41.28. Predictions vary, with a high estimate of $48.00 and a low estimate of $35.00, suggesting an upside potential of approximately 1.72% from its current trading price of $40.58. For a deeper dive into these estimates, visit the United States Steel Corp (X) Forecast page.
Further analysis from 11 brokerage firms provides US Steel Corp (X, Financial) with an average brokerage recommendation score of 2.4, which translates to an "Outperform" rating. This rating system spans from 1, indicating a Strong Buy, to 5, indicating a Sell.
Understanding GuruFocus Valuation
As per GuruFocus metrics, the estimated GF Value for US Steel Corp (X, Financial) over the next year stands at $29.70, pointing to a potential downside of 26.81% from its current market price of $40.58. The GF Value metric is GuruFocus' unique estimate of a stock's fair market value, calculated by examining historical trading multiples, past business growth, and future business performance forecasts. For more detailed financial insights, please visit the United States Steel Corp (X) Summary page.
