Street Calls of the Week
Investing.com - BMO Capital has raised its price target on Steel Dynamics (NASDAQ:STLD) to $167.00 from $155.00 while maintaining an Outperform rating on the stock. The stock, currently trading at $153.82 and near its 52-week high of $155.56, has demonstrated strong momentum with a 26.59% gain year-to-date. According to InvestingPro analysis, the company maintains a GOOD overall financial health score.
The price target increase follows Steel Dynamics’ third-quarter 2025 results, which prompted BMO to adjust its near-term estimates due to lower shipments and current market prices.
Despite trimming near-term projections, BMO increased its 2026 and 2027 estimates, citing expectations for an improved aluminum product mix at the steel manufacturer.
BMO noted that while the current demand and pricing environment remains subdued, Steel Dynamics is positioned to benefit from improved profitability at its Sinton facility and the ongoing ramp-up of its aluminum rolling mill.
The firm also highlighted that with Steel Dynamics’ elevated capital spending cycle largely completed, the company is well-positioned to generate above-peer free cash flow, potentially leading to increased shareholder returns.
In other recent news, Steel Dynamics Inc. announced its third-quarter 2025 earnings, which exceeded market expectations. The company reported an earnings per share (EPS) of $2.74, surpassing the forecasted $2.64, resulting in a 3.79% positive surprise. Revenue for the quarter came in at $4.8 billion, slightly above the anticipated $4.76 billion. These results reflect a strong financial performance for the period. Despite the positive earnings and revenue figures, the company’s stock experienced fluctuating reactions. Analysts and investors closely monitored these developments. The earnings results highlight the company’s ability to outperform market predictions. These recent developments are crucial for investors keeping track of Steel Dynamics.
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