Reliance Steel & Aluminum Co. Downgraded by UBS AG to “Neutral” (RS)
Reliance Steel & Aluminum Co. (NYSE:RS) was downgraded by research analysts at UBS AG from a “buy” rating to a “neutral” rating in a report released on Tuesday, TheFlyOnTheWall.com reports. They currently have a $75.00 price target on the stock, down from their previous price target of $80.00. UBS AG’s price objective points to a potential downside of 0.64% from the stock’s previous close.
The analysts wrote, “RS is a metals service center offering attractive exposure to improving US steel demand while limiting exposure to volatile metal prices. Its model of consolidating service centers has consistently been accretive, as RS normally buys smaller companies at lower multiples using low-cost debt. Within the metals service center industry, RS is a best-in-class operator with a top-tier management team, high inventory turns and EBITDA margins. However, we view the current stock price as fairly valued given our falling steel and aluminum price outlook and its impact on absolute profits. We rate Reliance Steel a Neutral and our $75 PT is based on an 8.0x EV/EBITDA (2015) multiple.”
Other equities research analysts have also recently issued reports about the stock. Analysts at Merrill Lynch downgraded shares of Reliance Steel & Aluminum Co. from a “buy” rating to a “neutral” rating in a research note to investors on Wednesday, September 25th. Separately, analysts at Bank of America Corp. downgraded shares of Reliance Steel & Aluminum Co. from a “buy” rating to a “neutral” rating in a research note to investors on Wednesday, September 25th. They now have a $75.00 price target on the stock. Finally, analysts at Zacks upgraded shares of Reliance Steel & Aluminum Co. from an “underperform” rating to a “neutral” rating in a research note to investors on Thursday, September 19th. They now have a $78.00 price target on the stock. Seven analysts have rated the stock with a hold rating and five have given a buy rating to the company’s stock. Reliance Steel & Aluminum Co. presently has an average rating of “Hold” and a consensus target price of $77.11.
Shares of Reliance Steel & Aluminum Co. (NYSE:RS) traded down 0.81% during mid-day trading on Tuesday, hitting $74.87. The stock had a trading volume of 273,449 shares. Reliance Steel & Aluminum Co. has a one year low of $51.78 and a one year high of $76.33. The stock has a 50-day moving average of $72.55 and a 200-day moving average of $68.61. The company has a market cap of $5.765 billion and a price-to-earnings ratio of 16.85.
Reliance Steel & Aluminum Co. (NYSE:RS) last posted its quarterly earnings results on Thursday, July 25th. The company reported $1.14 EPS for the quarter, missing the Thomson Reuters consensus estimate of $1.19 by $0.05. The company had revenue of $2.45 million for the quarter, compared to the consensus estimate of $2.48 million. During the same quarter last year, the company posted $1.44 earnings per share. Reliance Steel & Aluminum Co.’s revenue was up 10.8% compared to the same quarter last year.
Reliance Steel & Aluminum Co (NYSE:RS) is the metals service center company in North America (United States and Canada).
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