From Financial Modeling Prep: 2025-03-24 17:23:00

Steel Dynamics (NASDAQ:STLD) saw a 3% rise in shares after UBS upgraded the stock to Buy with a $149 price target. Stronger tariff protections and operational upside are creating a favorable environment for the steelmaker.

Recent U.S. election developments have led to import protections on steel and aluminum exceeding expectations, driving a rally in hot-rolled coil prices. Despite market weakness, UBS sees Steel Dynamics as an attractive option due to escalating trade tensions.

UBS predicts a potential pullback in steel prices later in the year but believes sustainable pricing at $800/ton for HRC is achievable. Import parity improvements and a steeper cost curve support this forecast.

Steel Dynamics’ organic growth pipeline, including the Sinton facility and aluminum operations, is expected to contribute around $1.2 billion in EBITDA. The company also has strong free cash flow potential and a robust capital return profile.

UBS views the current moment as ideal for investors to tap into Steel Dynamics’ long-term growth and cash generation potential, given the earnings momentum into Q2, potential upside in HRC spot prices, and more attractive valuation.



Read more at Financial Modeling Prep:: UBS Upgrades Steel Dynamics to Buy, Shares Gain 3%