This article was originally published on TipRanks.com
Integrated steel producer United States Steel Corporation (NYSE:X) recently announced that its new steel mill will be located in Osceola, Arkansas. The mill is expected to commence operations in 2024.
Following the news, shares of the company declined marginally to close at $24.34 in Tuesday’s extended trading session.
The new facility is aimed at making the steel production process more environmentally sustainable. To that end, upon completion, the facility is likely to feature two electric arc furnaces (EAFs) with three million tons per year of advanced steelmaking capability, an endless casting and rolling line, and advanced finishing capabilities.
The CEO of U.S. Steel, David B. Burritt, said, “We had numerous competitive site options, but Osceola offers our customers incomparable advantages. We intend to break ground this quarter and get to work as soon as permits are in hand. With its extraordinarily low-cost structure, energy efficient production equipment, and advanced capabilities, this $3 billion project will yield significant benefits to our customers, stockholders, communities, employees, and contribute to a more sustainable world.”
On January 11, Wolfe Research analyst Timna Tanners downgraded the stock rating to Sell from Hold with a price target of $24, which implies downside potential of 1.6%.
Consensus among analysts is a Hold based on 2 Buys, 2 Holds and 2 Sells. The average U.S. Steel stock prediction of $28.67 implies upside potential of 17.6% from current levels. Shares have gained 2.2% over the past year.
TipRanks’ Stock Investors tool shows that investors currently have a Very Negative stance on United States Steel, as 8.6% of investors on TipRanks decreased their exposure to X stock over the past 30 days.
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