SLX - U.S. Steel cut to Sell at Goldman which turns defensive as steel prices slip

U.S. Steel (NYSE:X) -4% pre-market after Goldman Sachs downgrades shares to Sell from Neutral with a $21 price target, cut from $24, seeing "higher capital intensity driving negative free cash flow momentum." As Goldman expects some of the major producers could struggle as higher steel prices reverse course, the firm also cuts Nucor (NYSE:NUE) to Neutral from Buy with a $108 price target, down from $123; NUE -2.6% pre-market. But Goldman also upgrades Cleveland-Cliffs (NYSE:CLF) to Buy from Neutral with a $24 target, as analyst Emily Chieng says "idiosyncratic opportunities" in the company are underappreciated, and raises Commercial Metals (NYSE:CMC) to Neutral from Sell with a $33 target, citing relative underperformance. ETF: SLX U.S. Steel shares have shed ~10% since mid-September on worries that the company's planned addition of a new steel mill will disrupt the current favorable supply and demand environment.

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U.S. Steel cut to Sell at Goldman, which turns defensive as steel prices slip