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Fly News Breaks for January 14, 2020
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Jan 14, 2020 | 05:10 EDT
Goldman Sachs analyst Matthew Korn reinstated coverage of U.S. Steel with a Sell rating and $9 price target. While the eventual upside potential from the company's major strategic moves is promising, the "risks to the stock are substantial," Korn tells investors in a research note. U.S. Steel's "difficult" recent operating history implies that execution risk is not inconsequential, and its plans will require "substantial" capital, prompting negative free cash flow through 2022, contends the analyst. Further, he believes the company's financial performance is likely to face a challenging transition period through difficult market conditions over 2020.