Nomura Securitie Maintains Bullish View on Steel Dynamics (STLD) Despite Weak Guidance

Nomura Securities analyst Curt Woodworth reiterated a Buy rating and $28 price target on Steel Dynamics (NASDAQ: STLD) despite weak guidance on seasonality and pricing.

commented, "STLD announced 4Q-14 adj. EPS guidance of $0.38-0.42, below our estimate of $0.52 and consensus of $0.45. Adjusted guidance includes $12mm ($0.03/share) of charges related to accounting adjustments for the Columbus acquisition and $6mm ($0.02/share) of charges tied to LCM adjustments in its scrap business. While today’s guidance is weaker than our expectation, looking ahead to 2015, we remain confident that STLD will be able to capitalize on recent value-added product investments and its acquisition of Severstal Columbus, while non-res activity continues to support stronger long product and fabrication volumes."

The firm lowers adj 4Q-14 EPS to $0.40 from $0.52 and EBITDA estimate to $259mm from $306mm. FY14E EPS goes from $1.44 to $1.33; FY15E EPS from $2.40 to $2.38.

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 $20.08 yesterday.

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