Nippon Steel: Direction Was Right, Timing Was Wrong

The article is a bullish analyst note on Nippon Steel following its U.S. Steel acquisition. The author argues the deal materially improves the company’s earnings profile and international positioning, with U.S. Steel now contributing more than 25% of group profit. Despite macro headwinds and a sharp earnings downturn, the company posted profitability in 2023, maintained its dividend, and raised profit forecasts. The piece frames Nippon Steel as financially resilient, well managed, and undervalued, with upside from both earnings growth and possible multiple expansion. Market impact is positive for Nippon Steel shares, as the new Buy rating and higher price target of ¥1,750/share reinforce the investment case.