UPDATE: J.P. Morgan Reiterates Overweight Rating, Lowers PT on Steel Dynamics

In a report published Monday, J.P. Morgan & Co. reiterated its Overweight rating on Steel Dynamics

, but slightly lowered its price target from $15.00 to $14.50. J.P. Morgan noted, “We rate STLD Overweight with a $14.50 price target. We continue to believe that STLD's stock is not accurately reflecting the earnings power of the company even at below normalized utilization rates, and think the benefits of the company's raw material cost initiatives will become more apparent as the Magnetation operation comes online. The company should also benefit from its more variable cost structure and lower scrap prices. Any rebound in non-residential construction could also provide a significant boost to the company's earnings as STLD's non-residential construction related steel businesses is still down roughly 60% since the 2005-2007 timeframe.” Steel Dynamics closed on Friday at $13.01.