Worthington Steel price target raised to $47 from $41 at KeyBanc

KeyBanc raised the firm’s price target on Worthington Steel (WS) to $47 from $41 and keeps an Overweight rating on the shares. Post Worthington’s announcement that it has entered into an agreement to acquire Klockner & Co. and the firm’s discussion with management, KeyBanc is providing additional thoughts. With the transaction expected to close in the second half of 2026, the firm’s estimates are unchanged. While the deal creates elevated net debt before deleveraging efforts, KeyBanc believes aggressive small-cap growth investors will be attracted to Worthington’s tremendous long-term EPS potential with KCO.