Bank of America Merrill Lynch Maintains Underperform on US Steel

Bank of America Merrill Lynch is out with its report today on US Steel X, maintaining Underperform. In a note to clients, Bank of America Merrill Lynch writes, "We rate U.S. Steel at Underperform given concerns related to excess supply in both its U.S. sheet and tubular divisions. We see sheet price weakness prevailing in the near term and think consensus estimates are too optimistic. Our $42 PO values X shares on 7.5x forward 12-month EV/EBITDA and 6-6.5x 2012E forward EV/EBITDA." At the time of posting, shares of X were trading pre-market at $43.40, down 2.01% from Monday's close.