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Steel Dynamics price target lowered to $135 from $140 at BMO Capital

BMO Capital analyst Katja Jancic lowered the firm’s price target on Steel Dynamics to $135 from $140 and keeps a Market Perform rating on the shares after its below-consensus Q2 pre-announcement. No specific outlook commentary was provided, other than Steel Dynamics flagging that the underlying steel demand remains intact, even though BMO’s own view is that demand has softened, the analyst tells investors in a research note. Given the weaker-than-expected Q2 outlook coupled with ongoing pricing headwinds, the firm believes that the Steel Dynamics Q3 results are likely to decline further, BMO added.

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