Deutsche Bank Starts Metals USA (MUSA) at Buy; Expect Continued Outperformance

September 7, 2012 8:14 AM EDT Send to a Friend
Get Alerts MUSA Hot Sheet
Price: $55.60 -0.55%

Rating Summary:
    3 Buy, 10 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 24 | Down: 28 | New: 14
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Deutsche Bank initiates coverage on Metals USA (NYSE: MUSA) with a Buy. PT $21.00.

Deutsche analyst said, "Steel equities have seen ongoing weakness, declining 22% YTD and underperforming the S&P by 33%, and MUSA has out-performed YTD both our steel universe and the S&P (46% and 12% respectively). However, MUSA shares have declined ~13% since Apollo (Nasdaq: APO) (its largest shareholder) sold a ~10% stake in early August. We view this as a buying opportunity given this recent share price weakness and the company’s market position. MUSA trades at 5x 2013E EBITDA, inline with our steel coverage but at a discount to SC peers."

DB EPS estimates are $1.74 in 2012 and $2.30 in 2013, higher than consensus ests of
$1.71 and $2.11 respectively.

For an analyst ratings summary and ratings history on Metals USA click here. For more ratings news on Metals USA click here.

Shares of Metals USA closed at $14.22 yesterday.


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