Analyst Brian K. Lee of Goldman Sachs reiterated a Sell rating on United States Steel (X – Research Report), with a price target of $64.00.
Brian K. Lee has given his Sell rating due to a combination of factors including SolarEdge Technologies Inc.’s (SEDG) recent performance and the market’s future expectations. In the recent quarter, SEDG’s revenue matched projections, but its margins fell short of estimates. Furthermore, the company’s outlook for the upcoming quarter was disappointing, as it was well below the consensus, indicating significant channel inventory that isn’t expected to balance out until the end of the year. Lee’s concerns are exacerbated by the lack of clear indicators for a sustained demand recovery and persisting challenges related to product mix.
The report also pointed out the significant quarter-over-quarter decline in shipped megawatts, highlighting a strategic under-shipping to expedite inventory rebalancing, which suggests a potential delay in returning to normal supply-demand dynamics. Lee’s analysis suggests that the current price of SEDG does not reflect these underlying challenges and the potential for further negative revisions to the company’s performance outlook. Given these factors, Lee maintains a bearish stance on SolarEdge Technologies, expecting the stock to underperform in the near term.
K. Lee covers the Technology sector, focusing on stocks such as SunPower, SolarEdge Technologies, and Veeco. According to TipRanks, K. Lee has an average return of 3.8% and a 45.97% success rate on recommended stocks.
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United States Steel (X) Company Description:
United States Steel Corp. engages in the manufacturing and selling of steel products. It operates through the following business segments: Flat-Rolled Products, U.S. Steel Europe, and Tubular Products. The Flat-Rolled Products segment includes managing steel plants and production facilities that manufacture steel slabs, rounds, strip mill plates, sheets, tin mill, iron ore, and coke. The U.S. Steel Europe segment offers producing and marketing strip mill plates, spiral welded pipe, heating radiators, refractory ceramic materials. The Tubular Products segment involves in manufacturing and trading seamless and electric resistance welded steel casing and tubing. line pipe, and mechanical tubing. The company was founded in 1901 by Andrew Carnegie, John Pierpont Morgan, Charles Michael Schwab and Elbert Henry Gary and is headquartered in Pittsburgh, PA.
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