With Nippon Deal In Trump's Court, JPMorgan Turns Cautious On US Steel

Lekha Gupta

April 16, 2025

JP Morgan analyst Bill Peterson downgraded United States Steel Corporation (NYSE:X) from Overweight to Neutral and cut the price forecast from $43 to $38.

The analyst cited the pending NSC deal, which seems to be ‘in the hands of the Trump administration’ as the reason.

In recent news, Nippon Steel and United States Steel are reportedly negotiating with the Trump administration to revive their $14 billion merger by significantly boosting investments in U.S. Steel’s Rust Belt facilities.

Also Read: Trump Torpedoes US Steel Deal, X Stock Tumbles Despite Bullish Chart

The analyst writes that, on the demand side, construction is under pressure, while tin/container demand should benefit from S232 tariffs.

Meanwhile, Peterson believes that the auto sector may experience short-term demand pull-through from earlier pre-buying, with longer-term tariff risks potentially impacting demand.

Regarding BRS2’s ramp-up, the analyst expects upstream melt capacity to be fully online in the second half of 2025, with the entire facility reaching steady-state production by 2026.

The analyst notes that last month, the company guided for the first quarter of 2025 adjusted EPS loss of 53 cents–49 cents (vs. consensus loss of 30 cents) and adjusted EBITDA of about $125 million, in line with prior outlook of $100 million – $150 million.

Consequently, Peterson now estimates softer FRP shipments this year and flat next year (-0.9%/+0.4% vs. previous +0.1%/+0.0%) to account for auto tariff risks.

Investors can gain exposure to the stock via VanEck Steel ETF (NYSE: SLX) and SPDR S&P Metals & Mining ETF (NYSE:XME).

Price Action: United States Steel shares are up 0.65% at $41.66 at the last check Wednesday.

Read Next:

Cramer Praises Trump For Pushback On Nippon ‘Dumper’ Steel, Calls The Block A ‘Smart Move’

Photo by T. Schneide via Shutterstock

Recommended

World Economic Forum: "Arguably the Most Exciting Human Discovery Since Fire" - Ad

The Most Important "AI Stock" You've Never Heard Of - Ad

Buffett's Favorite Chart Just Hit 209% - Here's What That Means For Gold - Ad

Popular

Shiba Inu's Burn Rate Fires 588%, Key Indicators Flash 'Buy' — What Up?

Nearly 23 million Shiba Inu (CRYPTO: SHIB) were kicked out of circulation Sunday, applying further deflationary pressure on the popular dog-themed meme coin.

In battle against transgender rights, Trump targets HUD’s housing policies

As a transgender man, the words “you’re a girl” gutted Tazz Webster, a taunt hurled at him from the day he moved into his St. Louis apartment.

Nvidia Is About to Shock the World: July 23rd

Nvidia Is About to Shock the World: July 23rd - Ad

Jeff Brown, the tech legend who picked shares of Nvidia in 2016 before they jumped by more than 22,000%, is warning everyone to... Mark this date on your calendar: July 23rd! That's when Nvidia could help send shares of this Elon Musk supplier skyrocketing higher.

Eric Trump Warns Banks Could Be 'Extinct In 10 Years' If They 'Don't Watch What's Coming,' Touting Blockchain As 'Better' Alternative

Eric Trump criticizes traditional banks as slow and expensive, says they could disappear in 10 years if they don't adapt.

Marjorie Taylor Greene Goes Stock Shopping Again: Here Are 50+ Stocks The Congresswoman Bought

Marjorie Taylor Greene disclosed buying more than 50 stocks in early May. A look at the list and why the congresswoman's past trades have drawn red flags.

He Called Bitcoin to $100k... Now He Says This Coin Is Next

He Called Bitcoin to $100k... Now He Says This Coin Is Next - Ad

Juan Villaverde may be America's top crypto expert. According to Juan's timing model, we are entering what could be the biggest bull market in crypto's history. With America's first crypto president in office, it could be the biggest gains the market has ever seen. And one special coin could skyrocket.

What's Going On With Advanced Micro Devices?

Advanced Micro Devices Inc. (NASDAQ:AMD) shares are trading higher Monday after a volatile week shaped by investor trades and broader movement in semiconductor stocks.

Warren Buffett To Step Down as Berkshire Hathaway CEO by End of Year, Asks Board To Confirm Greg Abel as Successor (CORRECTED)

Warren Buffett shocked attendees at the Berkshire Hathaway annual meeting on Saturday by announcing that he will step down as CEO by the end of the year, with Greg Abel set to succeed him.

Trump's Crypto Blueprint Unveils This Infrastructure Powerhouse

Trump's Crypto Blueprint Unveils This Infrastructure Powerhouse - Ad

One blockchain token sits at the heart of Washington's pro-crypto agenda. Institutions are loading up while it still trades at a discount. Here's how to get in for $3.

What's Going On With Oddity Tech Stock Wednesday?

ODDITY Tech Ltd. (NASDAQ:ODD) shares are moving higher Wednesday after the company reported better-than-expected first-quarter earnings Tuesday after the market close.

Warren Buffett's Favorite 'Single Best Measure' For Equities Flashes Buying Signal As US Stocks Rebound

Warren Buffett's favored "Buffett Indicator" suggests U.S. equities may be undervalued, signaling a potential buy opportunity as stocks rebound.

Have You Seen this Strange Elon Musk Device?

Have You Seen this Strange Elon Musk Device? - Ad

Tech legend Jeff Brown predicts this "space technology" will be Elon Musk's next trillion-dollar business, and it will make a lot of people rich. This could be the biggest internet innovation since the first web browser Netscape kicked off the internet boom in the late 1990s.

Donald Trump's Support Tanks Early in Second Term — Poll Numbers Paint Grim Picture

President Trump's approval ratings have plummeted 100 days into his second term.

Elon Musk Reacts After Ray Dalio Warns Of US Decline, US Retailers Push Chinese Suppliers To Resume Shipments And More: This Week In Economics

The weekend saw major developments, including Elon Musk's response to Ray Dalio's warning about U.S. decline, U.S. retailers pushing for resumed Chinese shipments, Musk's mixed feelings about his first 100 days, and the Nasdaq's impressive recovery.

Elon's Greatest Invention... Hidden in South Memphis?

Elon's Greatest Invention... Hidden in South Memphis? - Ad

Tech legend Jeff Brown recently traveled to the industrial zone of South Memphis to investigate what he believes will be Elon's greatest invention ever... Yes, even bigger than Tesla or SpaceX.

Japan's finance minister calls U.S. Treasuries "a card" in negotiations with Trump

TOKYO (AP) — Japan’s massive holdings of U.S. Treasurys can be “a card on the table” in negotiations over tariffs with the Trump administration, Finance Minister Katsunobu Kato said Friday.

China says it's evaluating US overtures for trade talks, but tariffs remain an obstacle

BEIJING (AP) — China’s Commerce Ministry said Friday that Beijing is evaluating multiple approaches by the Trump administration for trade talks.

Powering Ai's Future? One Company Is Already Doing It

Powering Ai's Future? One Company Is Already Doing It - Ad

Massive compute demand is choking AI's growth. While others wait, this firm is building infrastructure now-with elite GPUs and long-term contracts.

Scaramucci Calls Sam Bankman-Fried Revelation Worst Day of His Career: 'I Trusted the Guy, I Liked Him'

Anthony Scaramucci, who is known for his short stint as the White House communications director under Donald Trump, has opened up about his professional setbacks, including a significant loss due to a fraudulent act by Sam Bankman-Fried.

The EU seeks to halt Russian gas imports by the end of 2027 and ban new contracts already this year

BRUSSELS (AP) — The European Union should halt imports of Russian natural gas by the end of 2027 to deprive President Vladimir Putin of revenue that helps fuel his , the bloc’s executive branch said Tuesday.

A Historic Gold Announcement Is About to Rock Wall Street

A Historic Gold Announcement Is About to Rock Wall Street - Ad

The greatest investor of all time is about to validate what Garrett Goggin has been saying for months: Gold is entering a once-in-a-generation mania. Front-running Buffett has never been more urgent - and four tiny miners could be your ticket to 100X gains.

InterDigital Reports Q1 Earnings: The Details

InterDigital Inc (NASDAQ:IDCC) reported financial results for the first quarter before the market open on Thursday. Here's a look at the key metrics from the quarter.

Applied Digital (APLD) Secures $150M Preferred Equity Deal: What's Going On?

Applied Digital shares are trading higher by 14% during Thursday's session. The company announced it had entered into a Preferred Equity Purchase Agreement with select investors.

The AI Bottleneck Is Real-and One Firm Is Solving It

The AI Bottleneck Is Real-and One Firm Is Solving It - Ad

AI is scaling fast-but infrastructure is lagging. This firm isn't just aware of the problem, it's building the solution: servers, GPUs, and strategic AI deployments. NVIDIA noticed. Investors should too.

Tempus AI (TEM) Stock Lower Ahead Of Q1 Earnings Report, Notetaker AI Debut

Tempus AI shares are trading lower by 1.3% Tuesday afternoon. The company will report its Q1 earnings after Tuesday's market close.

Warren Buffett's Right-Hand Man Greg Abel Is Quietly Taking Over Day-To-Day Leadership At Berkshire Hathaway: 'Gotten Much More Involved In Capital Allocation Decisions'

Greg Abel, Warren Buffett's successor at Berkshire Hathaway, is already taking on significant leadership responsibilities, particularly in capital allocation, signaling a smooth leadership transition.

Government Moves + Nvidia Deals = AI Infrastructure Tailwinds

Government Moves + Nvidia Deals = AI Infrastructure Tailwinds - Ad

From Trump's Stargate initiative to NVIDIA's $500B bet, AI infrastructure is now strategic. This company is positioned at the heart of the buildout.

Consumer Tech News (Apr 28-May 2): Trump May Ease Auto Part Tariffs, House Republicans Tabled $250 Charge On EV & More

Trump to sign Take It Down Act targeting deepfake media, while easing tariffs on foreign parts for US vehicles. Apple reports strong earnings and considers shift to India amid China tariff pressures.

Cheap parcels from China will no longer be duty-free. Here's what it means for buyers and sellers

NEW YORK (AP) — Consumers can expect higher prices and delivery delays when the Trump administration ends a duty-free exemption on low-value imports from China Friday.

This Coin Could Surge Like Bitcoin Did Back in 2013...

This Coin Could Surge Like Bitcoin Did Back in 2013... - Ad

A new coin is emerging in the crypto world. And investing in it now could end up like Bitcoin or Ethereum during their first bull runs.

UN official urges Israel to lift aid blockade of Gaza and calls it 'cruel collective punishment'

JERUSALEM (AP) — The United Nations’ emergency relief coordinator urged Israel on Thursday to lift its blockade of aid into the Gaza Strip, saying the amounts to “cruel collective punishment.”

Zio Demand Drives 20% Revenue Growth For iRhythm, Bullish Sentiment Builds Among Analysts

iRhythm raises 2025 sales forecast and launches Zio ECG system in Japan as analysts boost ratings and price targets on strong Q1 performance.

The Cross-Chain Giant Set for 1,000%+ Gains

The Cross-Chain Giant Set for 1,000%+ Gains - Ad

This multi-chain protocol's volume is exploding while its price is still under the radar. Institutions are moving in fast-get our urgent report before retail wakes up.

Amazon's Tesla Robotaxi Rival Zoox Recalls 270 Driverless Vehicles Following Las Vegas Crash In April: Report

Amazon's Zoox recalls 270 vehicles due to software issue causing crash. AV sector sees growth with Waymo, Tesla and Uber.

Cathie Wood-Backed Tempus AI Says Pharma Contracts Solid Despite Biotech Funding Challenges, Tariff Pressures

Tempus AI reassured investors that its major pharma contracts remain strong despite funding and tariff pressures.

Is Trump Working Against America??

Is Trump Working Against America?? - Ad

As the market lost $5 trillion, Trump called it a "great time to get rich." Was it reckless--or part of a shocking master plan? Critics don't see it, but the real story behind Trump's move could change everything. A major twist is coming by June 17th-don't miss this.

Warren Buffett Expresses Disappointment Over Dollar Depreciation: Don't Want To Own Assets In A Currency That Is 'Really Going To Hell'

Warren Buffett expressed his disappointment over the depreciating U.S. dollar and said that no one would want to hold assets in USD.

Andy Jassy Pushes For Start-Up Mindset At Amazon: 'When You Get Larger...You Can Get Slowed Down'

Amazon.com Inc. (NASDAQ: AMZN) CEO Andy Jassy reinforced his mission to return the e-commerce giant to its startup roots during remarks at the Harvard Business Review Leadership Summit on Monday, emphasizing improved collaboration from the company's return-to-office mandate and streamlined management.

Nvidia's Ecosystem May Have Found a New Rising Star

Nvidia's Ecosystem May Have Found a New Rising Star - Ad

This tiny company is already generating revenue by delivering real compute-$20M+ in deals. With access to NVIDIA's partner network, they're not just watching the AI boom-they're powering it.

Fortress Palantir: Former Insider Explains How PLTR Could Conquer The AI-Defense Battlefield Despite Pricing Puzzles And Competition

A former Palantir Technologies Inc. (NASDAQ: PLTR) employee offers a brief primer on the enterprise AI company's products, pricing, and prospects over the next few years, particularly in defense and AI.