tiprankstipranks
Trending News
More News >

Steel Dynamics: Promising Growth Trajectory Justifies Buy Rating Despite EPS Guidance Concerns

Steel Dynamics: Promising Growth Trajectory Justifies Buy Rating Despite EPS Guidance Concerns

Carlos De Alba, an analyst from Morgan Stanley, maintained the Buy rating on Steel Dynamics (STLDResearch Report). The associated price target remains the same with $140.00.

Confident Investing Starts Here:

Carlos De Alba has given his Buy rating due to a combination of factors that indicate potential growth for Steel Dynamics. Despite a lower-than-expected EPS guidance for the second quarter of 2025, the company is showing signs of improvement in its core operations. The steel operation segment is anticipated to see enhanced profitability due to expanded metal spreads, with long product volumes expected to increase sequentially.
Additionally, while the steel fabrication segment may experience lower profits due to spread compression, the metals recycling business is projected to maintain steady earnings supported by stronger volumes. Furthermore, the progress at Columbus Aluminum, which is on track to begin material shipments by mid-2025, adds a positive outlook for future growth. These factors collectively suggest a promising trajectory for Steel Dynamics, justifying the Buy rating.

In another report released today, KeyBanc also maintained a Buy rating on the stock with a $153.00 price target.

Based on the recent corporate insider activity of 118 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of STLD in relation to earlier this year.

Disclaimer & DisclosureReport an Issue

1