Analyst Katja Jancic from BMO Capital maintained a Hold rating on Steel Dynamics (STLD – Research Report) and keeping the price target at $135.00.
Katja Jancic has given her Hold rating due to a combination of factors influencing Steel Dynamics’ current and future performance. One of the primary reasons is the company’s earnings per share (EPS) forecast for the first quarter of 2025, which aligns with her estimates but falls slightly below the consensus. This indicates that while the company is performing as expected, it may not exceed market expectations in the near term.
Additionally, while there are positive developments such as the Sinton facility’s progress towards profitability and the aluminum rolling mill’s timely commissioning, there are concerns about the sustainability of higher prices due to demand uncertainties and tariff issues. Although Steel Dynamics has a promising pipeline of growth projects, Jancic believes that the current stock price reflects its fair value, suggesting limited upside potential at this point in the cycle.
Jancic covers the Basic Materials sector, focusing on stocks such as Alcoa, Commercial Metals Company, and Steel Dynamics. According to TipRanks, Jancic has an average return of 11.8% and a 62.50% success rate on recommended stocks.
In another report released on March 11, J.P. Morgan also maintained a Hold rating on the stock with a $140.00 price target.