Dahlman Rose Sees 30% Upside In United States Steel Corporation (X)

Dahlman Rose & Co. has a $65 price target on shares of United States Steel Corporation X, and it has a Buy rating on shares after it reported earnings. In a note to clients, Dahlman writes, "US Steel reported 1Q11 results well below both our and the consensus expectations. We are lowering our price target to $65 from $85 amidst sharp revisions to our 2011 and 2012 EPS estimates. US Steel reported 1Q11 adjusted loss of ($1.16) Adjusted results exclude an $81 million ($0.56 per share) foreign currency gain related to the remeasurement of intercompany loans. Reported results were a loss of ($0.60). Adjusted results compare to our estimate of a loss of ($0.30) and the consensus estimate loss of ($0.39). Results compare with a loss of ($1.22) in 4Q10 and ($0.73) in 1Q10. Variance from our estimate can be attributed to lower than expected performance in both the Tubular and European segments." Shares of X are down 47 cents in pre-market trading to $49.25, a loss of nearly 1%.