U.S. Treasury Secretary Janet Yellen defended the blocked acquisition of U.S. Steel (X) by Nippon Steel (JP:5401) by stating that the Committee on Foreign Investment in the United States (CFIUS) conducted a “thorough analysis” before advising President Biden. In a CNBC interview, Yellen avoided discussing case specifics due to ongoing litigation but emphasized that the review followed standard national security procedures despite allegations of bias from Biden’s decision.
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Meanwhile, shares of U.S. Steel are down at the time of writing, partly due to Cleveland-Cliffs (CLF) CEO Lourenco Goncalves’ change in tone about pursuing a deal. After previously saying that he was interested in acquiring U.S. Steel if Nippon Steel’s bid failed, Goncalves suggested that remaining independent might be the best path for both companies due to potential changes in the industry under President-elect Donald Trump.
Reports indicate that Cleveland-Cliffs remains hesitant to bid for U.S. Steel due to its high valuation, with shares trading around $33 likely to make a premium deal less feasible. In addition, Goncalves had previously talked about potentially acquiring U.S. Steel assets if Nippon’s bid fell through, but his recent comments suggest a more cautious approach as market dynamics shift.
Is X Stock a Buy or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on X stock based on four Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 32% decline in its share price over the past year, the average X price target of $44 per share implies 34.9% upside potential.
