Analyst Carlos De Alba of Morgan Stanley maintained a Hold rating on Commercial Metals Company (CMC – Research Report), boosting the price target to $57.50.
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Carlos De Alba has given his Hold rating due to a combination of factors, including the company’s updated guidance and macroeconomic uncertainties. The forecast for Commercial Metals Company’s Core EBITDA has been adjusted upward for the fourth quarter of 2025, reflecting a slight improvement from previous estimates. However, despite this positive adjustment, the company’s projected negative free cash flow for fiscal year 2026 and the rising macroeconomic uncertainties have tempered expectations.
Carlos De Alba also considered the company’s strategic positioning to benefit from favorable government legislation and its optimism regarding its downstream-focused EBG. Nonetheless, new challenges such as potential reductions in federal spending and a smaller-than-expected tariff benefit on long products have led to a more cautious outlook. These factors collectively justify the Hold rating, as they suggest a balanced risk-reward scenario for investors at this time.
De Alba covers the Basic Materials sector, focusing on stocks such as MP Materials, Teck Resources, and Cleveland-Cliffs. According to TipRanks, De Alba has an average return of 11.6% and a 52.83% success rate on recommended stocks.
In another report released yesterday, UBS also reiterated a Hold rating on the stock with a $48.00 price target.