Commercial Metals Coverage Initiated at Credit Suisse (CMC)
Equities research analysts at Credit Suisse initiated coverage on shares of Commercial Metals (NYSE:CMC) in a research note issued to investors on Friday, TheFlyOnTheWall.com reports. The firm set a “neutral” rating and a $20.11 price target on the stock. Credit Suisse’s target price points to a potential upside of 6.18% from the company’s current price.
The analysts wrote, “CMC’s end-market exposure is ~75% construction (with the balance to industrial), relative to its closest peers STLD and NUE at 40% and 60% respectively,” the report noted. “The Architectural Billings Index (ABI) correlates well with CMC’s share price (r^2 = 0.76), and continued strength of this market should provide further earnings support into 2014. That said, our analysis suggests that much of the recent Non-Res excitement is already baked into the share price, and we’d need to see 2005-08 type operating margins in order to back fill the current share price with an appropriate level of earnings support.”
Several other analysts have also recently commented on the stock. Analysts at DA Davidson raised their price target on shares of Commercial Metals from $22.00 to $25.00 in a research note to investors on Wednesday, January 8th. Separately, analysts at Jefferies Group raised their price target on shares of Commercial Metals from $19.00 to $22.00 in a research note to investors on Wednesday, December 4th. They now have a “buy” rating on the stock. Finally, analysts at Citigroup Inc. downgraded shares of Commercial Metals from a “buy” rating to a “neutral” rating in a research note to investors on Monday, November 18th. Six equities research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. The stock currently has an average rating of “Hold” and a consensus price target of $19.99.
Shares of Commercial Metals (NYSE:CMC) traded down 5.82% during mid-day trading on Friday, hitting $18.94. 1,526,462 shares of the company’s stock traded hands. Commercial Metals has a one year low of $13.33 and a one year high of $21.20. The stock’s 50-day moving average is $20.01 and its 200-day moving average is $17.52. The company has a market cap of $2.222 billion and a P/E ratio of 32.23.
Commercial Metals (NYSE:CMC) last posted its quarterly earnings results on Tuesday, January 7th. The company reported $0.26 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.25 by $0.01. The company had revenue of $1.70 billion for the quarter, compared to the consensus estimate of $1.76 billion. During the same quarter in the previous year, the company posted $0.28 earnings per share. The company’s revenue for the quarter was down 3.8% on a year-over-year basis. On average, analysts predict that Commercial Metals will post $1.22 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Tuesday, February 4th. Investors of record on Tuesday, January 21st will be given a dividend of 0.12 per share. This represents a $0.48 dividend on an annualized basis and a yield of 2.53%. The ex-dividend date of this dividend is Thursday, January 16th.
Commercial Metals Company and its subsidiaries manufacture, recycle and market steel and metal products, related materials and services through a network, including steel minimills, steel fabrication and processing plants, construction-related product warehouses, a copper tube minimill, metal recycling facilities and marketing and distribution in the United States and in international markets.
Get Analysts' Upgrades and Downgrades via Email - Stay on top of analysts' coverage with Analyst Ratings Network's FREE daily email newsletter that provides a concise list of analysts' upgrades and downgrades. Click here to register now.