Monday - BMO Capital has increased its price target on Steel Dynamics (NASDAQ:STLD) to $120 from $110, while maintaining a Market Perform rating on the stock.
The revision follows Steel Dynamics' announcement of expected first-quarter earnings per share (EPS) in the range of $3.51 to $3.55, surpassing both BMO's and the consensus estimates, which were $3.36 and $3.32, respectively. This forecasted EPS marks a significant increase from the fourth quarter of 2023, which was reported at $2.61.
Steel Dynamics has noted that the demand from the non-residential construction sector remains robust, with the company's fabrication backlog now extending into the third quarter of 2024. Despite this positive outlook, BMO anticipates a potential decline in future results due to lower sheet prices, which may be somewhat mitigated by improved performance at the company's Sinton operations.
In light of Steel Dynamics' recent guidance and market conditions, BMO has revised its near-term estimates for the steel producer. The firm's updated target of $120 reflects a more optimistic view of Steel Dynamics' financial performance in the coming quarters, despite potential headwinds in the market.
The price target adjustment by BMO Capital is based on the latest financial data and market trends relating to Steel Dynamics.
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