Credit Suisse Downgrades Steel Dynamics (STLD) to Neutral

May 23, 2019 6:38 AM EDT
Get Alerts STLD Hot Sheet
Price: $53.21 -6.58%

Rating Summary:
    16 Buy, 7 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 25 | Down: 19 | New: 35
Trade Now! 
Join SI Premium – FREE

Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.

Credit Suisse analyst Curt Woodworth downgraded Steel Dynamics (NASDAQ: STLD) from Outperform to Neutral with a price target of $29.00 (from $38.00).

  • now forecast EBITDA to range from $1.2-1.4bn from 2019-2022 (from $1.3-1.5bn)
  • without compelling FCF yield / capital return upside potential, we struggle to see why SDI should trade above 7.0x EV/EBITDA given the 5 year median multiple of 6.7x and 10 year median of 6.3x.
  • Also the average 5-10 year FCF yield is ~8%.
  • Key risk is sheet metal spread and execution on new greenfield mill.

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 $28.33 yesterday.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst PT Change, Downgrades, Hot Downgrades

Related Entities

Credit Suisse