Analyst Katja Jancic of BMO Capital maintained a Buy rating on Reliance Steel, with a price target of $340.00.
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Katja Jancic’s rating is based on several compelling factors that suggest Reliance Steel is well-positioned for future success. Despite facing some near-term uncertainties, such as margin compression and a challenging tariff environment, Reliance Steel’s earnings have shown sequential improvement. The company’s ability to maintain modest year-over-year growth in earnings, even amidst these challenges, underscores its resilience.
Reliance Steel’s diversified product and end-market mix, along with its value-added processing capabilities, are key strengths that contribute to its robust performance. Additionally, the company’s predominantly domestic sourcing strategy further enhances its stability. With a strong balance sheet and healthy free cash flow generation, Reliance Steel is well-equipped to continue investing in growth and returning value to shareholders. These factors collectively support Katja Jancic’s Buy rating for the stock.