American Steel (NYSE:X) +1.8% in Friday’s trade, well below earlier gains, after second-quarter forecasts easily beat consensus estimates, but two Wall Street analysts cut their stock price targets nonetheless.

High raw material costs in the first quarter were more than offset by higher selling prices and increased shipment volumes, said Morgan Stanley, which maintained its equal weight rating and $27 price target.

But BMO analyst David Gagliano cut his PT stock to $23 from $30 while retaining his market performance rating, saying the company’s update came as no surprise, given other better-than-expected steel-related forecasts during the week.

Credit Suisse’s Curt Woodworth slashed his PT to $44 – still more than double current levels – from $49 while maintaining an outperform rating, saying the pace of EPS was mainly driven by higher share buybacks than expected during the quarter.

Woodworth continues to view US Steel (X) as the most undervalued steel company and believes that the structural transformation of the balance sheet and the quality of the asset base is underestimated by investors.

US Steel (X) “tends to burn investors during recessions,” wrote Paul Franke in a bearish analysis published recently on Seeking Alpha.