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GLJ ups U.S. Steel target on higher likelihood of takeover approval
The Fly

GLJ ups U.S. Steel target on higher likelihood of takeover approval

GLJ Research analyst Gordon Johnson raised the firm’s price target on U.S. Steel (X) to $45.88 from $38.57 and keeps a Buy rating on the shares. The firm’s government contacts are pegging the likelihood of Nippon Steel’s (NPSCY) deal to acquire U.S. Steel closing at 50% versus 0% just several weeks ago. Nippon has pledged to invest $1B to upgrade the 86-year-old hot strip mill at Irvin, which is expected to create 5,000 additional jobs over a period of four to five years, the analyst tells investors in a research note. GLJ believes the Street is underestimating the likelihood that President Biden steps in and approves the deal. Nippon’s bid to acquire U.S. Steel is for $55 per share.

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