Credit Suisse Downgrades Steel Dynamics (STLD) to Neutral

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.

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