Update shared on 18 Nov 2025
Fair value Increased 0.50%Analysts have slightly increased their average price target for Steel Dynamics by $0.83 to $167.42. They cite updated models and recent earnings, while highlighting ongoing valuation considerations and a persistently challenging demand environment.
Analyst Commentary
Recent updates from Wall Street offer a nuanced perspective on Steel Dynamics, with both bullish and bearish factors shaping analyst sentiment. Adjustments in price targets reflect evolving views on valuation, company execution, and growth prospects.
Bullish Takeaways
- Bullish analysts have raised price targets following strong third quarter results, indicating increased confidence in Steel Dynamics' recent financial execution.
- Model updates suggest that underlying fundamentals remain resilient, even in the face of ongoing market uncertainty.
- Incremental increases in price objectives indicate that the company's valuation may still offer upside potential if industry conditions improve.
- Neutral ratings maintained by some large firms suggest that downside risk is viewed as contained for now.
Bearish Takeaways
- Bearish analysts point to valuation concerns, noting that the stock has appreciated significantly in recent months and may be fully priced at current levels.
- Persistent demand headwinds continue to weigh on the outlook, with the operating environment described as challenging.
- Upward price target revisions have not always been accompanied by rating upgrades, which suggests that valuation remains a key constraint for further optimism.
- Near-term growth prospects appear limited by ongoing industry pressures and macroeconomic uncertainty.
What's in the News
- EU officials are voicing concerns over potential U.S. plans to expand steel and aluminum tariffs. They are seeking a quota system to prevent market flooding and maintain the spirit of recent trade agreements (Bloomberg).
- Canada is set to remove retaliatory tariffs on certain U.S. goods, but plans to maintain 25% import duties on U.S. steel and aluminum products. This move aligns policy with recent U.S. measures (Bloomberg).
- Steel Dynamics introduced new lower-embodied-carbon steel products, BIOEDGE and EDGE. These products leverage electric arc furnace technology and renewable energy certificates to help customers meet sustainability goals.
- The company reported a buyback of over 1.6 million shares, bringing total repurchases under its current program to 2.45% of outstanding shares.
- Steel Dynamics issued third quarter 2025 earnings guidance, forecasting improved performance across all operating segments. This outlook is supported by strong shipments, expanding metal spreads, and robust demand in key sectors.
Valuation Changes
- Fair Value: Increased slightly from $166.58 to $167.42.
- Discount Rate: Rose from 7.89% to 8.38%.
- Revenue Growth: Edged up from 7.39% to 7.45%.
- Net Profit Margin: Remained largely stable, with a minimal decrease from 11.86% to 11.86%.
- Future P/E: Increased from 10.34x to 11.01x.
Disclaimer
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