- Goldman Sachs is adding Reliance Steel (NYSE:RS) to the Americas Investment Buy List in the context of firm's Attractive coverage view. They believe that the recent 40% decline in the share price as of early May has created an excellent buying opportunity in this best in class service center. Firm estimates an upside potential of around 60% compared to 12-month target price estimate of $48 (raised from $44). They believe the market does not fully appreciate Reliance Steel's earnings potential post the Jorgensen acquisition. In addition, they are also raising estimates to account for the recent acquisition of Yarde Metals and a richer product mix. Expects further upside due to its diversified product mix, wide geographic footprint, and strong demand from its three key end markets: non-residential construction, aerospace, and energy.
Firm believe the stock has been hurt by the seasonal slow down and volatility in the overall market, particularly in the steel sector. However, as the company delivers potentially strong results over the next couple of quarters, they expect the stock to react positively. Prices for most of Reliance products remain strong, and demand from its key markets remain exceptionally healthy.
Notablecalls: This one will move on the call. Would not chase but this one could do a full point.
Firm believe the stock has been hurt by the seasonal slow down and volatility in the overall market, particularly in the steel sector. However, as the company delivers potentially strong results over the next couple of quarters, they expect the stock to react positively. Prices for most of Reliance products remain strong, and demand from its key markets remain exceptionally healthy.
Notablecalls: This one will move on the call. Would not chase but this one could do a full point.
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