BofA Securities Reiterates Buy Rating on Commercial Metals Company (CMC)
BofA Securities analyst Lawson Winder reiterated a Buy rating and $70.00 price target on Commercial Metals Company (NYSE: CMC).
The analyst comments "Commercial Metals’ (CMC) fiscal year (FY) Q3’24 adjusted (core) EBITDA was in-line with Bloomberg consensus and BofAe, and modestly above Visible Alpha (VA) consensus. North America (NA) steel segment results beat BofAe (driven by higher downstream shipments) but was offset by slightly lower-than-expected performance at Europe (EU) and Emerging Businesses Group (EBG) segments. For FYQ4’24, CMC guided for results to be consistent with Q3, driven by stable shipments / margins in NA and modest improvements in EU/EBG segments. Though Q4 guidance appears to be a bit light versus consensus, CMC is seeing ‘encouraging’ signs of increased infrastructure activity, with momentum set to build over the coming quarters. We continue to see CMC as the prime beneficiary among U.S. domestic steel producers of higher U.S. infrastructure spending over the next few years. Per ARTBA, year-to-date transportation contract awards are up 13% year-over-year, with significant unused State funds set to flow through. Additionally, CMC could announce significant self-help measures at a potential 2024 investor day – a key catalyst for the stock, in our view. Maintain Buy."
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Shares of Commercial Metals Company closed at $52.67 yesterday.