Commercial Metals initiated with a Neutral at JPMorgan

JPMorgan initiated coverage of Commercial Metals (CMC) with a Neutral rating and $52 price target The company is “on the cusp” of finishing a major capex cycle, leading to improved free cash flow generation and shareholder returns ahead, the analyst tells investors in a research note. However, the firm says near-term market indicators for Commercial Metals’ largest exposure in non-residential construction “look gloomy,” and could remain as such for some time given the uncertain macro outlook, weighed down by fluid trade policy and higher-for-longer rates.