- KeyBanc analyst Philip Gibbs's post-analysis maintained a balanced view on carbon steel equities. The analyst raised the price target for 4 metal & mining companies.
- The analyst believes momentum-based carbon sheet names likely need to cool off post the Russia-Ukraine cost/pricing surge amid growing signs of HRC pricing fatigue and investors making much more aggressive midterm normalized EBITDA assumptions.
- Gibbs raised the price target for Reliance Steel & Aluminum Co (NYSE:RS) to $215 (an upside of 7%) from $200 while maintaining the Overweight rating on the shares.
- The analyst states that RS is the highest-quality, most defensive equity in the space amid strong recurring FCFE, solid margins, creating long-term shareholder value, and infrastructure optionality.
- The analyst raised the price target of Schnitzer Steel Industries, Inc. (NASDAQ:SCHN) to $62 (an upside of 7.4%) from $59 while maintaining the Overweight rating on the shares.
- Gibbs states that SCHN remains a favorite momentum vehicle, as it should capitalize on elevated ferrous and non-ferrous scrap prices, U.S. ferrous scrap export arbitrage opportunities via the Russia-Ukraine conflict, and new value-enhancing investments.
- Commercial Metals Co's (NYSE:CMC) price target was raised to $50 from $47 (an upside of 7.9%) to reflect higher estimates and cash flow and maintained the Overweight rating on the shares.
- Timkensteel Corp's (NYSE:TMST) price target was raised to $27 (an upside of 9%) from $24 and maintained the Overweight rating on the shares.
- Price Action: RS shares are trading higher by 1.21% at $200.92, SCHN lower by 1.70% at $57.67, CMC higher by 3.06% at $46.43, and TMST higher by 1.60% at $24.71 on the last check Wednesday.
