KeyBanc Upgrades Steel Dynamics (STLD)

KeyBanc Capital upgraded its rating of Steel Dynamics, Inc. (NASDAQ: STLD) to BUY from HOLD and established a $23 price target. KeyBanc cites “strong shipping momentum in flat-rolled and SBQ markets, increased likelihood of metal spread expansion, and marked improvement in scrap processing operations.”

KeyBanc analysts note “accelerated upside in prime ferrous scrap costs, exacerbated by the continuation of miserable winter weather into early March, has supported more lackluster investor interest in EAF steel producers such as STLD.”

KeyBanc Capital sees prices for hot-rolled carbon steel approaching $700/ton for May. Analysts see “a solid opportunity to shift emphasis into STLD for near-term alpha.”

Currently Steel Dynamics, Inc is trading up 2.80%.