Seeking Alpha

Get set to buy US Steel, Steel Dynamics, Morgan Stanley suggests

  • Shares of US Steel (X -2.4%) have slipped 20% YTD while Steel Dynamics (STLD -0.8%) has dropped 13.5%, prompting Morgan Stanley’s Evan Kurtz to say it might be time to buy shares even amid weakening steel prices.
  • On US Steel, the firm believes the company specific EBITDA tailwinds described by management on the last earnings call are too compelling to ignore, and sees any price cycle related weakness as a buying opportunity.
  • STLD is a bargain at current levels, the firm says - a top notch operator that trades below fair value, and it is pursuing two major projects that are ramping up this year and will add to mid-cycle earnings power.
Comments (1)
  • I concur as it being the time to buy STLD! At $16 and change it is definitely time to scoop some more up before it eventually goes back up to or near that $20 mark!
    25 Feb, 09:57 PM Reply Like
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