Goldman Sachs analyst maintained a Hold rating on Reliance Steel yesterday and set a price target of $318.00.
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Goldman Sachs’s rating is based on a combination of factors that highlight both the strengths and challenges faced by Reliance Steel. The company is recognized as the largest metals service center in North America, which provides it with significant scale and diversification across various products, geographies, and end markets. This diversification helps mitigate the risks associated with a cyclical business and positions the company well to take advantage of demand rebounds.
Despite these strengths, the Hold rating reflects certain market challenges and uncertainties. While demand in non-residential construction and general manufacturing remains robust, and there are expectations for continued strength in the auto and defense aerospace sectors, commercial aerospace faces challenges due to inventory overhang. Additionally, while Reliance Steel has competitive advantages such as financial stability, a decentralized business model, and a strategic acquisition approach, these factors are balanced against potential market disruptions from tariffs and geopolitical issues.
In another report released on November 24, Bank of America Securities also reiterated a Hold rating on the stock with a $305.00 price target.
RS’s price has also changed slightly for the past six months – from $308.220 to $288.010, which is a -6.56% drop .