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

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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