Goldman Sachs analyst Matthew Korn downgraded U.S. Steel to Sell from Neutral and lowered his price target for the shares to $11 from $17. The analyst expects the stock to weaken as the market continues to absorb the effects of materially lower steel prices. This will likely pull down consensus EBITDA estimates and increase pressure on the company's balance sheet, Korn tells investors in a research note. The analyst says a number of investors he's spoken to are concerned about U.S. Steel's leverage and cash flows given the company's plan to spend $1.2B on upgrades to its Mon Valley Works facility, funded largely with new debt.

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.