Argus analyst David Coleman downgraded U.S. Steel to Hold from Buy after its Q3 earnings came in "significantly short" relative to his estimates, also lowering his FY19 and FY20 EPS views by 83c and $1.36 to $50c and 29c respectively. The analyst notes that the "highly competitive" steel industry is being affected by "excess global capacity", marked by limited price increases during periods of economic growth and price decreases during periods of economic contraction. Coleman further cites industry competition coming from producers of aluminum, cement, composites, glass, plastics and wood.

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.