Goldman Sachs Reinstates Steel Dynamics (STLD) at Buy

Goldman Sachs analyst Nick Cash reinstates coverage on Steel Dynamics (NASDAQ: STLD) with a Buy rating and a price target of $300.00.

The analyst comments: “We are reinstating coverage of STLD with a Buy rating and a $300 12-month price target. STLD is a US steel producer which is diversified across flat and long products, fabricated products, raw materials and is now expanding into aluminum. We anticipate STLD will continue to focus on margin accretive growth investments as the company also looks to reduce through-cycle earnings volatility with the next step-change in earnings coming from the ramp of the company's aluminum business. We note that on February 26th, after multiple rounds of bids, BlueScope Steel (BSL.AX) rejected the "best and final" takeover proposal from a consortium of Steel Dynamics Inc. (STLD) and SGH Limited (SGH.AX), where BSL.AX's Board deemed the price insignificant. Investor reactions have been largely muted as the key focus in 2026 has been the ramp of the company's aluminum segment and the opportunity to capture positive pricing momentum within the US as well as market share from imports. Furthermore, we view the recent pullback as an attractive entry point for STLD given its durable through-cycle earnings power and highest ROIC across our steel coverage, with free cash flow inflecting, trading at a 9.1% FY2 FCF yield compared to historical 3-year average of 7.1%.”

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 $259.74 yesterday.

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