Wells Fargo Starts Steel Dynamics (STLD) at Market Perform; Good Home, But Tough Block

Wells Fargo initiates coverage on Steel Dynamics (NASDAQ: STLD) with a Market Perform. PT range $10-$12.00.

Wells analyst says, "Near term, we are cautious on the shares due to a challenging pricing environment, which we expect to pressure margin and earnings through 2012. We are favorable on the company longer term, due to its low cost structure and potential catalysts from capacity expansion and iron mining, but prefer to wait for macroeconomics to stabilize or a better entry point on the shares. Our $10-12 valuation range is based 10-12x our 2012 EPS estimate of $1.02."

For more ratings news on Steel Dynamics click here and for the rating history of Steel Dynamics click here.

Shares of Steel Dynamics closed at $10.87 yesterday.

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