Jefferies Starts Rates Steel & Aluminum (RS) at Buy

Jefferies initiates coverage on Reliance Steel & Aluminum (NYSE: RS) with a Buy rating and $69 price target.

The firm states, "Following the -19% pull back in prices from YTD peaks, valuations are notably attractive and underestimate the company’s long term earnings potential following its acquisition and expansion activity during the downturn. Our $69 price target values the shares at 7.0x 2012E EBITDA; in line with long term historical average multiples."

For more ratings news on Reliance Steel & Aluminum click here and for the rating history of Reliance Steel & Aluminum click here.

Shares of Reliance Steel & Aluminum closed at $49.64 yesterday.

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