Nippon Steel: Direction Was Right, Timing Was Wrong

Nippon Steel Corporation earns a Buy rating with a new price target of ¥1,750/share, reflecting improved structural upside post-U.S. Steel acquisition. U.S. Steel now contributes over 25% of group profit, transforming Nippon Steel into a hybrid international player with unique U.S. market exposure and earnings resilience. Despite a severe earnings downturn and macro headwinds, 2023 results show profitability, a maintained dividend, and raised profit forecasts, supporting the investment thesis. I see Nippon Steel as fundamentally safe, well-managed, and undervalued, with realistic upside from earnings growth and potential multiple expansion.