Jefferies analyst Chris LaFemina maintained a Buy rating on Commercial Metals Company (CMC – Research Report) yesterday and set a price target of $62.00.
Chris LaFemina has given his Buy rating due to a combination of factors that suggest a positive outlook for Commercial Metals Company. The company’s recent quarterly earnings were in line with expectations, and there is anticipation of increased earnings in the upcoming quarter, driven by higher shipments and margins in North America. Additionally, the company has maintained its share repurchase activities and adjusted its capital expenditure guidance, which positions it well for the second half of the fiscal year.
Furthermore, the US rebar market, where CMC is a significant player, has seen recent price hikes, which are expected to continue benefiting from seasonal construction demand. This market is less reliant on imports, providing stability against global trade fluctuations. The company’s valuation appears attractive, with expectations of rising earnings and free cash flow improvements in the coming years, reinforcing the Buy recommendation.