Russel Metals Inc T.RUS

FYI: Comment on Q 4 results

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Russel Metals Maintained at Buy at Stifel GMP Following Q4 Results; Price Target Kept at C$42.00

11:04 AM EST, 02/13/2023 (MT Newswires) -- Stifel GMP on Monday reiterated its buy rating on the shares of Russel Metals (RUS.TO) with a C$42.00 price target after the metal-products distributor reported strong fourth-quarter results.

"We view this quarter's strong print as a reinforcement of our positive view on the stock. The 2023E operating outlook is constructive in our view, given modest demand improvement from 4Q22 and recovering steel prices from the November lows. Our Street high 2023E EBITDA is modestly increased to $426 mm. We are maintaining our TP of $42.00/sh and reiterate our BUY rating. In our view, RUS continues to screen very well and there is room to run given its inexpensive valuation (1.1x 24E P/Book) and lagging share performance compared to its peers (YTD: RUS was up 12% vs. peers' 23% run as of yesterday's close)," analyst Ian Gillies wrote.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 35.39, Change: +1.54, Percent Change: +4.55

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Comments and TP's Raymond James analyst Frederic Bastien said last week’s release of better-than-expected fourth quarter results, including an eighth consecutive earnings per share beat, strengthened his conviction on Russel Metals Inc. ( RUS-T +5.64%increase   ), believing its “catch-up trade still has legs.”   “Although we expect the changing interest rate