TSX:RUS - Post Discussion
Post by
ace1mccoy on Apr 22, 2022 8:54am
LB Hikes TP
* In reaction to a “weaker” stock performance versus its peers, Laurentian Bank Securities analyst Troy Sun sees an opportunity for investors with Russel Metals Inc. (
), believing its relative valuation is “getting compelling for this high-quality commodity trade.”
He raised his target to $45 from $40, keeping a “buy” rating. The average is $40.14.
“As the market-imputed EV/EBITDA multiples continue to trade around the long-term median, we believe the market is underappreciating a transformed business model (with less energy exposure but more value-added products),” said Mr. Sun. “In addition, we are also of the view that the demand environment is not fully priced in (as forward consensus numbers continue to impute a declining pricing dynamic, but that is only half of the equation). An auto industry rebound, non-residential construction super cycle, and commodities are all tangible tailwinds that could benefit RUS’ business prospects over the coming 24 month.”
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