UPDATE: Goldman Sachs Raises PT to $18 on Steel Dynamics

Goldman Sachs reiterates its Neutral rating on Steel Dynamics

and raises its price target to $18 from $14 as growth is expected to continue in 2012. Goldman Sachs notes, "We are raising 2012 quarterly estimates to $0.38/$0.48/$0.40/$0.25 from $0.34/$0.43/$0.38/$0.24 on higher margin assumptions. Note that our 1Q estimate does not include expenses of approx. $10 mn associated with the refinancing and unamortized financing fee write-offs. This raises the annual estimate to $1.50 from $1.40. There is no change to our 2013 EPS estimate. The higher 2012 estimate along with 13% increase in multiples (reflecting improving sentiments in the market and improving sentiments toward the steel sector) raises our 6-month P/E- and EV/EBITDA-based price target to $18 from $14." STLD closed at $15.46 a share on Wednesday.