X - U.S. Steel: Staying Positive

2024-04-18 14:00:30 ET

Summary

• President Biden claims that U.S. Steel will remain American-owned, denting U.S. Steel's exit strategy.
• U.S. Steel's shareholders have approved Nippon's takeover bid, but headwinds from the public sector and civil society have emerged.
• Despite the growing uncertainty, we think enough local bidders exist for U.S. Steel to secure a premium-on-market price sale.
• Key metrics suggest U.S. Steel stock is undervalued on a standalone basis, adding a floor to a failed takeover.
• We maintain our Buy rating.

United States Steel Corporation ( X ) is in the news again after President Joe Biden stated the firm would remain " American owned ," promising that a foreign sale will not be allowed for as long as he's in power....

For further details see: