UBS downgrades Steel Dynamics on balanced risk/reward post rally

UBS analyst Andrew Jones downgraded Steel Dynamics (STLD) to Neutral from Buy with a price target of $149, up from $145. Despite “weak” steel sector Q3 results and Q4 outlooks amid “disappointing” pricing and demand data, Steel Dynamics shares are up over 25% from the September lows, the analyst tells investors in a research note. The firm says steel was perceived as a relative winner from President-elect Trump’s protectionist policies. UBS still expects a recovery in steel demand and prices into 2025, but after the recent rally in the stocks and an increase in interest rate expectations, it finds the risk/rewards as more balanced.