** Shares of U.S. Steel rise 2.5% to $32 premarket
** J.P.Morgan upgrades stock to "overweight" from "neutral", raises PT on stock to $42 from $40
** Expects co's shares to retreat further in a knee-jerk reaction if/when co's deal with Nippon Steel breaks officially, which would present a "solid buying opportunity"
** Also likes co's easing capex requirements driving a likely free cash flow inflexion into 2025 and a major part of its core profit being driven by its Mini Mill segment
** JPM believes in more favourable risk/reward for North American steel equities in 2025 against an improved interest rate environment and stable post-election backdrop
** Brokerage also upgrades Nucor to "overweight" from "neutral" and Steel Dynamics to "neutral" from "underweight"
** Average rating of ten analysts on X is a "buy", median PT $42.50 - LSEG data
** X stock down over 35% YTD, till last close
(Reporting by Purvi Agarwal in Bengaluru)
((Purvi.Agarwal@thomsonreuters.com))
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