Goldman Sachs Maintains Buy Rating On Steel Dynamics

According to Goldman Sachs, Steel Dynamics STLD has guided for 2Q2011 EPS of $0.35-$0.40, significantly below its prior estimate of $0.61 and consensus estimate of $0.57. Goldman Sachs said that, apart from $0.03 swing from the prior quarter due to hedging losses, most of the shortfall came from the recycling division. “We are lowering our 2Q estimate to $0.40 and keeping our future estimates unchanged. This lowers our 2011 estimate to $1.58 and drives our six-month, P/E, EV/EBITDA and M&A based price target (PT) to $21 from $23. We maintain our Buy rating.” Steel Dynamics closed yesterday at $15.35.