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What: Shares of manufacturer United States Steel Corporation jumped as much as 12.4% in afternoon trading on Wall Street as analysts became more bullish on the steel market.
So what: Credit Suisse upgraded competitor AK Steel from underperform to overperform today and doubled their price target to $7 per share
Now what: Analyst comments or upgrades can often be market movers in the short term, but investors should look at the long-term trends in the metals business. Prices have been low as Asian suppliers have kept the market oversupplied, and that's resulted in a lot of struggles for U.S. metals producers. While the market may be happy with the steel business today, the sentiment can turn on a dime, and until I see a sustainable return to profitability I don't see a reason to jump into U.S. Steel's shares.
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