Goldman Sachs Upgrades U.S. Steel To Buy (X)

Goldman Sachs is out with a research report this afternoon, where it upgrades shares of U.S. Steel X to Buy, from Neutral; it has a price target of $75.00 on the stock, up from $61.00. The GS analysts noted that they favor X's leverage to rising steel prices and demand and believe it offers a good opportunity. Its vertical integration into iron ore and attractive priced coking coal contract for 2011 in the US, combined with higher realized prices beyond 1Q should be strong earnings drivers for 3Q and the FY. As for valuation, the analysts remarked, “US Steel is currently trading at 16.9X 2011E P/E & 6.2X 2011E EV/EBITDA.