Nomura Securities Upgrades Steel Dynamics (STLD) to Buy

Nomura Securities upgraded Steel Dynamics (NASDAQ: STLD) from Neutral to Buy with a price target of $21.00 (from $20.00).

Analyst Alexander Burnes commented, "e are upgrading STLD shares from Neutral to Buy and increasing our target price to $21 from $20. STLD is now our top pick in the space. We see EBITDA and cash flow inflecting higher in 1H16E, supported by moderate upside to steel prices as both destocking and import pressure start to fade, combined with sustained pressure on raw materials costs via seaborne scrap values. We think STLD has the balance sheet and cash flow to capitalize on the current market dislocation, and we expect management to continue to pursue bolt-on or organic opportunities that improve its product offering and share of the U.S. VAP market. Ongoing product expansion at Columbus should provide additional margin tailwinds."

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 $17.21 yesterday.

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