Jefferies Reiterates a 'Buy' on Steel Dynamics (STLD); Solid 4Q Results Amidst A Challenging Environment

Jefferies reiterates a 'Buy' on Steel Dynamics (NASDAQ: STLD) price target raised from $16 to $19.

Analyst, Luke Folta, said, "We maintain our BUY rating as we see our fundamental thesis intact following 4Q11 results. Though we do not expect industry capacity utilization or metal margins to fully recover this year due to the ongoing impact of oversupply, we expect earnings to continue to improve due on higher shipments and demand. Leading indicators of U.S. steel market consumption have been encouraging as of late suggesting continued growth in shipments throughout 2012-2013. We continue to see STLD best positioned and highlight its above average returns and FCF generation/yield relative to peers." (Jefferies raises FY12 EPS estimate from $1.40 to $1.50, maintains 2013 at $2.00)

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 $16.01 yesterday.

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