Reliance Steel (RS) has received a new Buy rating, initiated by J.P. Morgan analyst, Bennett Moore.
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Bennett Moore has given his Buy rating due to a combination of factors that highlight Reliance Steel’s strong market position and growth potential. The company has demonstrated resilience in its earnings profile, supported by a diversified product range and a decentralized operating model that reduces earnings volatility. This stability is particularly valuable in the current uncertain macroeconomic environment, where trade and interest rate fluctuations pose significant challenges.
Furthermore, Reliance Steel’s growth prospects are bolstered by its strategic acquisitions and organic growth initiatives. The company’s history of successful mergers and acquisitions, coupled with opportunities for value-added processing, positions it well for continued expansion. The anticipated increase in free cash flow through 2027, along with a robust dividend policy and potential for share buybacks, further supports the Buy rating. Additionally, the company’s ability to consistently outperform industry benchmarks in terms of shipments and production underscores its competitive advantage and justifies the premium valuation assigned to its stock.
According to TipRanks, Moore is a 3-star analyst with an average return of 14.2% and a 57.14% success rate.
In another report released on September 5, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $330.00 price target.