Deutsche Bank Downgrades US Steel To Hold, Reiterates Buy On Nucor

Since late-Oct, DB covered steel stocks have rallied 25% in the midst of surging steel prices due to rising input costs and lean inventories. However, several indicators suggest that US benchmark prices may be ready for a pause in the coming months. Therefore Deutsche Bank is downgrading U.S Steel X shares, which have reached its price target of $57. Deutsche Bank maintains selective exposure to the steel sector by reiterating our Buy on Nucor NUE, which it believes presents a more attractive risk-reward in the medium-term. DB has a $50 PT on Nucor. X closed Tuesday at $55.63 NUE closed Tuesday at $45.04