Katja Jancic, an analyst from BMO Capital, maintained the Buy rating on Steel Dynamics. The associated price target remains the same with $150.00.
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Katja Jancic’s rating is based on several key factors. Firstly, Steel Dynamics has shown improvement in profitability at its Sinton facility, despite earlier challenges with suppliers. This improvement is expected to continue into the second half of 2025, although the full potential of the facility may not be realized until 2026. Additionally, the company’s aluminum rolling mill has started production, with expectations of reaching significant capacity by the end of the year, and further growth anticipated through 2026.
Moreover, Steel Dynamics is considered a leading domestic steel producer, well-positioned to capitalize on expanded Section 232 tariffs. The company boasts a strong balance sheet and generates free cash flow that surpasses its peers, which supports shareholder returns. These strengths, according to Jancic, are not yet fully reflected in the current stock price, making it an attractive buy.
According to TipRanks, Jancic is a 4-star analyst with an average return of 12.5% and a 66.25% success rate. Jancic covers the Basic Materials sector, focusing on stocks such as Nucor, Algoma Steel Group, and Steel Dynamics.
In another report released yesterday, UBS also reiterated a Buy rating on the stock with a $149.00 price target.