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Steel Dynamics (STLD) shares climbed more than 2% in pre-market trading on Friday after Morgan Stanley upgraded the stock to ‘Overweight’ from ‘Equalweight’ and raised its price target to $158 from $145.
Steel prices are up in reaction to U.S. tariff policy, the analyst told investors in a research note reported by TheFly.
While President Donald Trump recently paused tariffs on several imports from Mexico and Canada, his administration had previously imposed a 25% tariff on nearly all imports from both countries.
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Additional steel and aluminum tariffs are still set to take effect on March 12, the President confirmed on Thursday at a press conference.
While Morgan Stanley raised its 2025 steel price forecasts, it warned of a potential pullback in the second half of the year due to a "tempered steel demand outlook and widening import arbitrage."
Still, the brokerage sees Steel Dynamics as well-positioned for gains, noting that the company’s capital expenditure cycle is nearing completion, which should free up cash flow and increase shareholder returns.
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On Stocktwits, retail sentiment around Steel Dynamic’s stock improved to ‘neutral’ territory from ‘bearish’ a day ago. The move was accompanied by a slight increase in retail chatter.
Steel Dynamics stock remains down 4% over the past year but has gained 8% year-to-date.
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