Citi Maintains Buy on Steel Dynamics

Citi is out with its report today on Steel Dynamics STLD, maintaining Buy. In a note to clients, Citi writes, "While 2Q earnings guidance disappointed, demand appears to have returned to 1Q levels following an early 2Q lull and mill profitability per ton has expanded. We retain our positive stance on STLD based on 1) healthy industry utilization rates and spot metal margins and 2) reasonable valuation on current earnings that are still negatively impacted by weak construction markets." At the time of posting, shares of STLD were trading pre-market at $15.21, down 0.91% from Thursday's close.