U.S. Steel cut to Sell at Citi, could struggle to keep up with falling prices


U.S. Steel (X -0.5%) is downgraded to Sell from Neutral with a price target cut to $23 from $28 at Citigroup after shares have climbed more than 35% in six months.

The company appears stronger with new management removing costs, but this may not be enough in a falling price environment, Citi says.

Credit Suisse also is out cautious on the steels (SLX), believing that a natural gas price spike could leave steel producers in the cold.

Meanwhile, Steel Dynamics (STLD +2.9%) is upgraded to Buy from Neutral at BAML, which notes that STLD generates a strong cash flow.

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