Analyst Carlos De Alba of Morgan Stanley maintained a Hold rating on Commercial Metals Company (CMC – Research Report), retaining the price target of $53.00.
Carlos De Alba has given his Hold rating due to a combination of factors that reflect mixed financial performance and future expectations for Commercial Metals Company. The company’s revenue slightly exceeded consensus estimates, but its core EBITDA and adjusted EPS fell short of both consensus and internal projections. Cash from operations was significantly below expectations, which raises concerns about the company’s ability to generate cash flow.
Despite some positive aspects, such as North American steel operations performing better than expected in terms of average selling prices and volumes, the overall financial results were not strong enough to warrant a more favorable rating. The European segment showed a slight improvement, but the outlook remains near breakeven. Additionally, the company has revised its capital expenditure guidance downward, which could impact future growth. These factors collectively contribute to the Hold rating, as the company shows potential for improvement but also faces challenges that need to be addressed.
CMC’s price has also changed moderately for the past six months – from $53.270 to $47.360, which is a -11.09% drop .