UPDATE: Bank of America Merrill Lynch Lowers PO on US Steel to $39

Bank of America Merrill Lynch is out with its report today on US Steel X, lowering its PO from $42 to $39. In a note to clients, Bank of America Merrill Lynch writes, "We rate X Underperform on concern over excess US sheet and tubular tons. We forecast $680/t for H2 HRC prices but spot is at $660-700 and consensus looks high. Our new $39 price obj. uses 7.5x (vs a prior 7x) 2012E forward EV/EBITDA." Shares of X closed Tuesday at $40.62, down 8.29% from Monday's close.