-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We increase our 12-month target by $7 to $203, as we assume STLD will trade at an EV/EBITDA of 8.5x our 2027 EBITDA estimate, a premium to STLD's three-year average forward EV/EBITDA of 8.1x and above the peer-group average forward EV/EBITDA of 7.6x. We raise our 2026 EPS estimate by $0.82 to $14.78 and our 2027 EPS forecast by $1.12 to $16.73. STLD's Q1 results showcased record steel shipments of 3.6 million tons and improving pricing, yet we downgrade shares given valuation concerns, currently at a 25% premium to peers and near the peak of their three-year fwd EV/EBITDA range: 4.5x-10.8x. While the aluminum ramp-up presents a compelling long-term growth story with management targeting $650-$700 million in through-cycle EBITDA from aluminum operations near-term losses of $65 million in Q1 highlight execution risks. With shares trading near 52-week highs following a 35% gain over the past month, we see limited upside as the stock has priced in much of the aluminum opportunity and favorable steel fundamentals.