Analyst Chris LaFemina of Jefferies reiterated a Buy rating on Steel Dynamics (STLD – Research Report), retaining the price target of $145.00.
Chris LaFemina has given his Buy rating due to a combination of factors that highlight Steel Dynamics’ promising financial trajectory. The company has demonstrated a strong focus on executing its organic growth strategy, which is largely funded and emphasizes optimizing existing investments rather than pursuing new growth avenues in the near term. This approach is expected to result in rising earnings, cash flow, and capital returns, even if steel prices experience a downturn.
Furthermore, Steel Dynamics is poised to benefit from increased production capabilities and strategic investments, such as in aluminum processing, which are anticipated to contribute to profitability in the future. The company’s financial metrics, including a favorable free cash flow yield and capital return trajectory, support the Buy rating. These factors, combined with the company’s strategic growth initiatives, suggest a positive outlook for Steel Dynamics’ stock performance compared to its peers.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $140.00 price target.
STLD’s price has also changed slightly for the past six months – from $128.640 to $122.490, which is a -4.78% drop .