Shares of U.S. Steel (NYSE:X) fell almost 4% in today’s trading after Cleveland-Cliffs (NYSE:CLF) CEO Lourenco Goncalves suggested that President Biden might block U.S. Steel’s sale to Nippon Steel (NISTF) before an upcoming debate with former President Donald Trump. He noted that the United Steelworkers union and Trump were against the deal and emphasized that Biden wouldn’t want to be scrutinized about it during a debate.
Goncalves also believes that the upcoming presidential debate might force Biden to make a definitive decision on the transaction. In addition, three Republican Senators recently pressed Biden to either prohibit or suspend the transaction, which reinforces the sentiment that U.S. Steel should remain under American ownership, a position Biden has hinted at.
Should You Buy U.S. Steel Stock?
Turning to Wall Street, analysts rate both U.S. Steel and Cleveland-Cliffs as Holds, although they see more upside potential from the former. In fact, its $50 price target implies over 39% upside potential from current levels. This comes after a 71.57% gain over the past 12 months.
