Saturday June 19, 2021, 05:26:03

Steel Dynamics (STLD): Dropping Coverage

By Chris D. Olin

As part of a strategic review, we are concluding formal coverage on Steel Dynamics (STLD), effective today, as the company no longer fits into our long-term coverage plan. Continue reading

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Wednesday March 10, 2021, 18:04:40

Steel: Adjusting Ratings, Raising Price Targets and Revising Estimates Following Strong Survey Results

By Chris D. Olin

We rearranged the steel coverage group investment ratings to account for recent trading strength, the divergence between the closing prices and price targets, and higher earnings outlook(s). Today’s actions were triggered by the better-than-expected carbon steel survey results and review of future market drivers. Among the major changes, we upgraded Nucor (NUE) after considering the new earnings outlook and the rising potential for a stimulus trading boost. At the same time, we lowered STLD and RS to OUTPERFORM (versus Strong Buy) following the recent surge in trading. While still positive on these two names, we would be less aggressive. Finally, we referred to the surprising level of bullishness building throughout the channel and strong survey data points. The most interesting takeaway involved steel contacts raising their year-end HRC price forecast by $100-125/ton. Continue reading

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Tuesday December 22, 2020, 08:43:02

Steel Dynamics (STLD): Raising Estimates Following The Release of Favorable Mid-Quarter Guidance

By Chris D. Olin

We adjusted our Steel Dynamics (STLD) model to better align with the favorable mid-quarter earnings update issued late last week. Our updated 4QE and CY20 EPS forecasts are now $0.80 and $2.57, respectively (+$0.18), supported by more aggressive profit assumptions across the Steel Mill and Metals Recycling segments. Continue reading

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