UPDATE: BMO Capital Markets Initiates Coverage on United States Steel on Mixed Factors

In a report published Wednesday, BMO Capital Markets analyst Meredith Bandy initiated coverage on United States Steel Corporation X with a Market Perform rating and $19.00 price target. In the report, BMO Capital Markets noted, “BMO Research is initiating coverage of U.S. Steel with a Market Perform rating and US$19 target price. U.S. Steel appears attractive based on EV/EBITDA, but after adjusting for legacy liabilities, valuation is less compelling. X's balance sheet is by far the most stretched of the group at 5x net debt to EBITDA for FY2013. There is also potential for dilution from an out-of-the-money convertible bond due in 2014. The company is also leveraged to construction (residential and non-residential) and automotive markets that have largely already rebounded.” United States Steel Corporation closed on Tuesday at $20.51.