Argus analyst David Coleman lowered his price target on U.S. Steel to $30 after its "strong Q4 but weak guidance", also lowering his FY19 EPS view to 4.53 from $6.00 based on the management's outlook. The analyst is also concerned that the company's spending on asset revitalization plan will weigh on earnings in the near term, even though he sees its long-term outlook as promising. Coleman keeps his Buy rating on U.S. Steel, saying that its 4.9-times forward earnings multiple is well below the peer average valuation of 9.2-times, with shares also "trading below the peer average for price/sales and price/cash flow."

Says will continue to buy back stock "hand over fist." Says Cleveland-Cliffs (CLF) "the only U.S. solution" for U.S. Steel (X). Says will have to "re-assess value" of U.S. Steel. Says targeting net debt to EBITDA of 2.5x. Says balance sheet in "great shape, near record liquidity." Sees CapEx ~$1B/year from 2025-2028. Comments taken from Q1 earnings conference call.