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Wells Fargo Identifies Three U.S. Steel Stocks as Potential “Winners”

A Wells Fargo analyst, Timna Tanners, spotlighted Steel Dynamics, Commercial Metals, and AZZ as likely beneficiaries in the U.S. steel industry, contingent on the persistence of 50 % import tariffs on steel and aluminum. In a report published today (August 15, 2025), Tanners assigned Buy ratings, with price targets of $143 for Steel Dynamics, $61 for Commercial Metals, and $128 for AZZ. She anticipates that sustained tariffs, alongside a projected rebound in demand—especially in non-residential construction—and potentially lower interest rates in 2027, will bolster profitability. Concurrently, the report maintained Hold ratings on Nucor and Cleveland-Cliffs, and a Sell on Ternium, the latter due to its limited U.S. exposure. Hot-rolled coil prices, which stand near $830/ton, could stabilize at around $900/ton, reinforcing positive price trends if trade policies remain unchanged. Despite the optimistic outlook, markets responded with modest share declines today: AZZ dropped approximately 3.2 % to $112.88, Steel Dynamics fell 1.4 %to $127.48, and Commercial Metals slid 2.1 % to $57.13. The report adds to ongoing debate on how enduring policy and macroeconomic shifts might influence margins across the steel sector.

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