Morgan Stanley analysts upgraded US Steel (NYSE:X) from Equal Weight to Overweight and raised the price target to $40 per share, marking a $15 increase.

Additionally, the analysts designated the stock as a new Top Pick in the firm's mining sector research coverage. This upgrade is driven by the expected value creation resulting from US Steel's "transformational investments."

The transformation includes the expansion of the company's Electric Arc Furnace (EAF) capabilities and the development of high-value downstream products. A notable aspect of this transformation is the construction of the advanced Big River 2 (BR2) mini mill, with a capacity of 3.0 million tons per annum, which is set to become operational in 2024.

Furthermore, the ongoing strategic review process to potentially sell assets or the company itself highlights the value of US Steel's growth initiatives.