UPDATE: Goldman Sachs Upgrades Steel Dynamics as Non-Res Recovery is a Growth Driver
In a report published Monday, Goldman Sachs analyst Sal Tharani upgraded the rating on Steel Dynamics (NASDAQ: STLD) from Neutral to Buy, and raised the price target from $17.00 to $22.00.
In the report, Goldman Sachs noted, “We upgrade STLD to Buy from Neutral, as we expect the company to benefit from a continued recovery in the non-residential construction market, benefit from recent growth capex to higher value added products like premium rails and SBQ, as well as the impact from successful implementation of its Mesabi Nugget project which so far has been a big draw on its income. We see more upside potential in STLD compared to its mini-mill peers due to its higher leverage to flat steel (where we are getting more constructive), its move to high value added products and relative better valuation). We raise our 6-month P/E-, EV/EBITDA-, and M&A-based price target to $22 from $17, implying 24% upside potential, as we update our methodology to include a 50% weighting on normalized (mid-cycle) estimates and a 50% weighing on 2014 estimates.”
Steel Dynamics closed on Friday at $17.78.
Latest Ratings for STLD
|Dec 2016||Deutsche Bank||Maintains||Buy|
|Nov 2016||JP Morgan||Maintains||Overweight|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.