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.