Wells Fargo Starts Reliance Steel & Aluminum (RS) at Outperform

March 21, 2013 7:25 AM EDT
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Price: $81.88 +2.04%

Rating Summary:
    7 Buy, 9 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 5 | Down: 5 | New: 0
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Wells Fargo initiates coverage on Reliance Steel & Aluminum (NYSE: RS) with a Outperform rating and $77-$83 valuation range.

"We view Reliance's business model as defensive due to a highly variable cost structure, like the growth-through-acquisition strategy (most recently MUSA), and expect earnings to bottom in Q1 as steel prices recover," the analyst said in its new Buy rating. "While our estimates are more conservative than the Street due to an underwhelming start to 2013, we would be buyers as expectations reset."

For an analyst ratings summary and ratings history on Reliance Steel & Aluminum click here. For more ratings news on Reliance Steel & Aluminum click here.

Shares of Reliance Steel & Aluminum closed at $69.98 yesterday.

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