Bank of America Securities analyst Sathish Kasinathan maintained a Buy rating on Commercial Metals Company yesterday and set a price target of $70.00.
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Sathish Kasinathan’s rating is based on several strategic moves and financial performances by Commercial Metals Company (CMC). The company’s fiscal year Q4’25 results were in line with expectations, with strong segment performances that offset higher corporate eliminations. The North America Steel Group is anticipated to experience significant margin expansion, which is a positive indicator for future profitability.
Additionally, CMC’s acquisition of Foley Products for $1.84 billion, despite being at a higher multiple than CMC’s own trading multiple, is seen as a strategic entry into a stable, higher-margin business. This acquisition, along with the previously announced acquisition of Concrete Pipe & Precast LLC, positions CMC to capitalize on synergies and scale opportunities. The company also anticipates additional cash tax benefits and expects the acquisition to be accretive to earnings and cash flow. These factors contribute to CMC being a preferred choice within the steel sector, justifying the Buy rating.
In another report released yesterday, Citi also upgraded the stock to a Buy with a $65.00 price target.