In a report released yesterday, Carlos De Alba from Morgan Stanley maintained a Buy rating on Steel Dynamics (STLD – Research Report), with a price target of $158.00.
Carlos De Alba has given his Buy rating due to a combination of factors that suggest a positive outlook for Steel Dynamics. Despite the company’s 1Q25 EPS guidance being slightly below consensus estimates, it aligns with De Alba’s projections, indicating a stable financial performance. The company’s strategic stock repurchases reflect confidence in its valuation and potential for future growth.
Moreover, Steel Dynamics anticipates improved profits in its steel operations segment due to increased shipments, which are expected to counterbalance any metal margin compression. The Sinton Flat Roll Division’s high production levels and the anticipated profitability in the upcoming quarter further support this positive outlook. Additionally, the metals recycling business is projected to see higher earnings due to steady volumes and better pricing, while the Columbus, MS Aluminum rolling mill’s progress towards production adds another layer of growth potential for the company.
De Alba covers the Basic Materials sector, focusing on stocks such as Teck Resources, Freeport-McMoRan, and Steel Dynamics. According to TipRanks, De Alba has an average return of 12.9% and a 50.76% success rate on recommended stocks.