UPDATE: Citigroup Reiterates on United States Steel on Raised EPS Estimates

In a report published Monday, Citigroup analyst Brian Yu reiterated a Neutral rating on United States Steel Corporation (NYSE: X), and raised the price target from $26.00 to $29.00.

In the report, Citigroup noted, “Based on our revised commodity price forecasts, we have raised our EPS estimates for ‘13/'14 to -$1.30 / $0.95 from -$1.39 / $0.80 but are reducing our '15 EPS estimate to $1.10 from $1.40 to reflect our lower iron ore price forecast. Based on our 2014E and a 7.25x multiple we apply an 80% weighting on our increased $32/sh EV/EBITDA valuation and a 20% weighting on our lowered DCF derived valuation of $16/sh to arrive at our increased target price of $29/sh but maintain our Neutral/High Risk (2H) rating.”

United States Steel closed on Friday at $28.00.