Axiom Reiterates Sell On United States Steel, Sees 45% Downside For The Stock

In a research report issued today, Axiom analyst Gordon Johnson reiterated a Sell rating on United States Steel (NYSE:X) with a price target of $22.00, which represents a potential downside of 45% from where the stock is currently trading.

Johnson noted, “With just a -5% correction in HRC prices, since 8/22, X is guiding 4Q14 EBITDA/EPS lower by -43%/-64% QoQ, respectively (which we blv is also a byproduct of 3Q14 channel stuffing); further, w/ X’s admission that lower oil prices will likely challenge the OCTG seg. in 1Q15, & the fact that the recent weakness in HRC prices will be more prevalent in 1Q15 EPS vs. 4Q14 (due to timing), we blv earnings have peaked & see sig. downside risk to Street ests.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Gordon Johnson has a total average return of 17.0% and a 67.2% success rate. Johnson has a -46.7% average return when recommending X, and is ranked #156 out of 3373 analysts.



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