BMO Capital Upgrades Steel Dynamics On Tariff Support, Robust Cash Flow – Retail Stays Bullish As Stock Holds Amid Market Weakness
The brokerage described Steel Dynamics as a "best-in-class" domestic steel producer with a product mix that is well-aligned with the new trade measures.
FollowShares of Steel Dynamics (STLD) traded almost flat on Monday afternoon despite the broader market weakness after BMO Capital upgraded its rating to ‘Outperform’ from ‘Market Perform.’
Markets commenced the week on a sluggish note ahead of President Donald Trump’s tariff announcement on Wednesday.
BMO raised its price target on Steel Dynamics to $145 from $135, implying an upside of nearly 18% from current levels.
The brokerage cited the company’s strong positioning to benefit from expanded Section 232 tariffs.
It described Steel Dynamics as a "best-in-class" domestic steel producer with a product mix that is well-aligned with the new trade measures, as per TheFly.
BMO also pointed to operational improvements at the company’s Sinton mill and its multi-year investment cycle nearing completion.
These factors, the brokerage said, should drive above-peer free cash flow generation, enabling "healthy" shareholder returns.
Steel Dynamics retail sentiment and message volume on March 31 as of 1:20 p.m. ET | Source: Stocktwits
On Stocktwits, retail sentiment around the stock dipped lower but remained in the ‘extremely bullish’ zone, accompanied by ‘high’ levels of chatter.
On March 12, 2025, the U.S. implemented a 25% tariff on all steel and aluminum imports, removing previous country-specific exemptions and increasing the aluminum tariff from 10% to 25%.
The administration argues that the policy is essential to national security and to boost underutilized domestic production.
Last week, UBS analyst Andrew Jones noted that U.S. steel and aluminum tariffs have exceeded expectations since the election, fueling a strong rally in hot-rolled coil steel prices.
However, he added that Steel Dynamics’ stock has struggled in recent weeks, tracking the broader market’s decline amid rising trade tensions.
Steel Dynamics shares have fallen 17.3% over the past year but have gained 7.2% in 2025.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
Read also: Agnico Eagle Stock Pares Early Losses After UBS Turns ‘Neutral’ But Citi Hikes Price Target – Retail’s Optimistic As Gold Hits Record Highs
subscribe to Asianet Newsable WhatsApp channel by clicking here.
