Steel Dynamics price target raised to $120 from $118 at JPMorgan

JPMorgan raised the firm’s price target on Steel Dynamics to $120 from $118 and keeps an Underweight rating on the shares. The firm reduced its steel pricing outlook on increasing supply and overhangs from interest rates and the election. It anticipates Q2 results in-line to above “conservative” mid-quarter guides for companies that provided and likely below consensus for companies didn’t, saying Q2 demand and pricing “eased meaningfully.” Given “weaker-than-usual” seasonal activity with buyers in a “holding pattern,” the analyst anticipates “downbeat” Q3 comments from the North American steel companies. While JPMorgan feels stocks are largely bottoming, it is not expecting a strong bounce back.