Commercial Metals downgraded to Hold from Buy at Jefferies

Jefferies analyst Christopher LaFemina downgraded Commercial Metals (CMC) to Hold from Buy with an unchanged price target of $70. The firm cites valuation and its near-term preference for flat-rolled steel producers for the downgrade. Commercial Metals shares are at a year-to-date high following the company’s announced second acquisition of a precast concrete solutions’ supplier last week, the analyst tells investors in a research note. Jefferies says the company’s net debt will “meaningfully increase” following the closing of its recent transactions, and shareholder returns should slow as a result.