One of the most vocal United States Steel Corporation (NYSE: X) bears on Wall Street finally changed his tune this week, upgrading the stock from Sell to Hold. On Friday morning’s PreMarket Prep, Axiom analyst Gordon Johnson said U.S. Steel has a major catalyst coming in January that could potentially drive the stock’s share price much higher.
“The reason why we got out of the way now is because you have a Section 232 case that is going to be determined by January 15, 2018—Trump is going to make a decision,” Johnson said.
President Trump has ordered an investigation into the potential risk that U.S. steel imports pose to national security, the groundwork for him potentially using his Section 232 powers to restrict steel imports.
What’s Behind The Recent Run
U.S. Steel stock has soared 54 percent in the past six months despite the fact that the company’s free cash flow dropped from $304 million in the second quarter to only $128 million in the third…