Jefferies Maintains a 'Buy' on Steel Dynamics (STLD); 3Q11 Recap; Cutting Estimates on Reduced Steel Consumption Outlook

Jefferies maintains a 'Buy' on Steel Dynamics (NASDAQ: STLD) price target cut from $20 to $16.

Jefferies analyst says, "On a reduced outlook for U.S. steel consumption growth, we have lowered estimates and our target price for STLD. Best positioned among its mill peers and deeply discounted to longer term earnings potential, we continue to see value in the shares and maintain our rating."

"In line with our reduced outlook for industry consumption, pricing, and metals spreads (full detail enclosed), we have reduced earnings estimates for STLD to $0.14 (-$0.13) for 4Q11 and to $1.40 (-$0.60) for 2012. On lower 2012E earnings, we reduced our target price to $16 (-$4)."

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 $11.51 yesterday.

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