UBS Reiterates Buy Following Steel Dynamics' (STLD) 2c EPS Beat

UBS reiterated a Buy rating and $22.00 price target on Steel Dynamics (NASDAQ: STLD) following the company's 3Q15 earnings report. STLD reported Q3/15 EPS of $0.25, above consensus of $0.23. Operating income was up 9% QOQ.

Analyst Matt Murphy commented, "The macro overhang that we have seen for the majority of the year in the US steel industry will likely last through the remainder of 2015. STLD notes that steel buyers have been hesitant to place orders in the face of elevated inventories and falling scrap prices. It views current utilization levels as not reflective of strength in US steel consumption. STLD cites automotive as strong and construction as steadily improving, however it believes seasonality and high imports could erode profitability in Q4/15. It expects inventories to normalize and scrap prices to stabilize in 2016, allowing for improving domestic production next year."

For an analyst ratings summary and ratings history on Steel Dynamics click here. For more ratings news on Steel Dynamics click here.

Shares of Steel Dynamics closed at $18.10 yesterday.

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