- Shares of US Steel (X -2.4%) have slipped 20% YTD while Steel Dynamics (STLD -0.8%) has dropped 13.5%, prompting Morgan Stanley’s Evan Kurtz to say it might be time to buy shares even amid weakening steel prices.
- On US Steel, the firm believes the company specific EBITDA tailwinds described by management on the last earnings call are too compelling to ignore, and sees any price cycle related weakness as a buying opportunity.
- STLD is a bargain at current levels, the firm says - a top notch operator that trades below fair value, and it is pursuing two major projects that are ramping up this year and will add to mid-cycle earnings power.
Get set to buy US Steel, Steel Dynamics, Morgan Stanley suggests
Feb 25 2014, 15:20 ET