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Steel Dynamics upgraded to Buy at UBS on trade protections, selloff

Steel Dynamics upgraded to Buy at UBS on trade protections, selloff

UBS analyst Andrew Jones upgraded Steel Dynamics (STLD) to Buy from Neutral with a $149 price target Tariff protection for U.S. steel and aluminum has exceeded the firm’s expectations since the election, resulting in a significant rally in hot-rolled coil steel prices, the analyst tells investors in a research note. Meanwhile, the stock has sold off and de-rated with the sell off in the broader market amid the escalating trade war, the firm says. The firm sees a good entry point for Steel Dynamics with earnings momentum from Q2, upside risk to consensus if spot HRC holds, and a more supportive valuation.

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