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

|About: Steel Dynamics, Inc. (STLD)|By:, SA News Editor

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.