X
<

Analysts Take a Fresh Look at US Steel Stocks after 3Q17

PART:
1 2 3 4
Analysts Take a Fresh Look at US Steel Stocks after 3Q17 PART 1 OF 4

Analysts Take a Fresh Look at US Steel Stocks after 3Q17

US steel stocks

All leading US-based steel companies (SPY) (SPX) have released their 3Q17 earnings. While U.S. Steel Corporation (X) and Nucor (NUE) posted better-than-expected earnings, AK Steel’s (AKS) 3Q17 earnings fell short of analysts’ estimates. Analysts typically reassess their recommendations after a company’s earnings release. In this series, we’ll discuss how analysts are rating leading US-based steel producers after their 3Q17 earnings. We’ll start by looking at Steel Dynamics’ (STLD) ratings and target price.

Analysts Take a Fresh Look at US Steel Stocks after 3Q17

Interested in X? Don't miss the next report.

Receive e-mail alerts for new research on X

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

Steel Dynamics released its 3Q17 earnings on October 18 and posted revenues of $2.44 billion during the quarter—compared to $2.1 billion in 3Q16 and $2.39 billion in 2Q17. The company reported an adjusted EPS (earnings per share) of $0.66 in 3Q17—compared to $0.64 in 3Q16 and $0.63 in 2Q17.

Analysts’ ratings

According to consensus estimates compiled by Thomson Reuters, Steel Dynamics has a mean one-year target price of $41.73, which represents 10.5% upside compared its closing price on November 8. In contrast, the stock carried a target price of $40.14 on October 17—one day before its earnings release. Steel Dynamics received a “strong buy” rating from three analysts, while six analysts rated the stock as a “buy.” The remaining four analysts rated the stock as a “hold.”

KeyBanc upgraded Steel Dynamics from “sector weight” to “overweight” after its 3Q17 earnings. Citi raised Steel Dynamics’ target price from $41 to $42. Cowen and Company raised the stock’s target price from $39 to $43. Morgan Stanley also raised Steel Dynamics’ target price from $33 to $36 on October 24.

In the next part, we’ll see how analysts are rating Nucor after its 3Q17 earnings.

X

Please select a profession that best describes you: