Olympic Steel upgraded to Overweight on valuation at KeyBanc

KeyBanc last night upgraded Olympic Steel (ZEUS) to Overweight from Sector Weight with a $42 price target as part of a Q4 preview for the carbon steel group. The firm maintains a “balanced view” on carbon steel equities. The primary variable of 2025 earnings volatility will likely be pricing/spread related, with some opportunity for volume growth, the analyst tells investors in a research note. KeyBanc believes value in Olympic Steel shares is re-emerging. Following the recent pullback, value investors are getting an attractive entry point into a business that has experienced structural profit improvement via acquisitions and internal investments over the last several years, the firm contends.