U.S. Steel just upgraded at JPMorgan, here’s why

JPMorgan analyst Bill Peterson upgraded U.S. Steel to Overweight from Neutral with a price target of $42, up from $40. Following a period of underperformance amid weakening fundamentals, the firm thinks the risk/reward is more favorable for North American steel equities “as investors will begin to positively discount an improved rate environment and stable post-election backdrop in 2025.” The analyst sees Nucor (NUE) and U.S. Steel (X) as best positioned for upside into next year. JPMorgan thinks the recent pullback in U.S. Steel shares “represents an attractive buying opportunity on standalone valuation support.”