President Donald Trump’s steel and aluminum duties could boost shares of Steel Dynamics , according to KeyBanc. Analyst Philip Gibbs upgraded shares of the steel producer to overweight from sector weight. His price target of $155 represents 17% upside from Monday’s close. The rating change comes after Trump signed an executive order to impose a 25% levy on steel and aluminum imports to the U.S. Shares of Steel Dynamics popped nearly 5% on Monday in anticipation of the signing. Still, Gibbs thinks the stock trades at a reasonable valuation relative to peer and that the company is at an inflection point. STLD 1Y mountain STLD 1Y chart “We believe STLD’s Sinton operations are finally turning the corner operationally after losing nearly $200M in 2024 given improving upstream yields, lower major maintenance costs, higher production, and improving mix,” he said. “STLD is also uniquely suited to be the primary sheet volume market share beneficiary of declining prospective import activity, notably in galvanized sheet.” These catalysts are likely to support positive earnings revisions for Steel Dynamics, Gibbs added. Future steel tariffs from the Trump administration should also support prospective spot sheet pricing in the near term, further benefiting the stock. Steel Dynamics shares are higher by 16% this year already and have gained 6% over the past 12 months. They also added 2% in the premarket following the upgrade. Analysts are split on the stock. LSEG data shows that just five who cover it rate it a buy or strong buy, while eight have a hold rating on the stock.
KeyBanc upgrades Steel Dynamics, citing Trump’s steel tariffs as a catalyst