BMO Capital lifts Ryerson Holding price target to $25, keeps rating

On Monday, BMO Capital Markets updated its outlook on Ryerson Holding Corporation (NYSE:RYI), raising the firm’s price target on the stock to $25 from the previous target of $23. The stock, currently trading at $24.30, has shown strong momentum with a 10.66% gain over the past week. The investment firm maintained its Market Perform rating for the metal services company.

The decision comes after Ryerson Holding reported its fourth-quarter results for 2024, which aligned with analysts’ adjusted EBITDA predictions of $112.4 million. According to InvestingPro data, analysts expect the company to return to profitability this year, with an EPS forecast of $0.88 for 2025. BMO Capital’s analyst, representing the firm’s view, cited the positive outlook as the primary reason for the revised price target, indicating expectations of material sequential earnings improvement in the first quarter of 2025, with further gains anticipated throughout the year.

Ryerson’s current investment cycle is nearing completion, with the company’s strategy now pivoting towards optimization and cost management. The company maintains a healthy liquidity position with a current ratio of 2.08, and BMO Capital believes this shift in focus is likely to lead to enhanced profitability over time for Ryerson Holding.

The analyst’s statement emphasized the potential for "Better Times Ahead" for Ryerson. The firm’s analysis suggests that the culmination of Ryerson’s investment activities and the transition to optimization and cost management should contribute to an improved profitability trajectory for the company.

Investors have been provided with a more detailed picture of Ryerson’s financial direction, as the BMO Capital analyst’s comments underline the expected positive developments in earnings and profitability for the remainder of 2025. The raised price target reflects the firm’s anticipation of these favorable outcomes for Ryerson Holding Corporation.

In other recent news, Ryerson Holding Corporation has announced several significant developments. The company has adopted amended and restated bylaws to align with recent changes in Delaware law, which include removing outdated provisions and enhancing shareholder nomination procedures. This update is part of Ryerson’s ongoing efforts to streamline corporate governance and ensure compliance with current legal standards. In another major development, Ryerson Holding has appointed KPMG LLP as its new independent auditor for the fiscal year ending December 31, 2025. This decision follows a comprehensive evaluation by the Audit Committee and Board of Directors and will take effect after the 2024 audit is completed. Ernst & Young LLP, the previous auditor, had no disagreements with Ryerson’s financial statements for 2022 and 2023. The transition to KPMG is notable, although Ryerson has not specified reasons beyond the evaluation process. These updates reflect Ryerson’s commitment to strong corporate governance and financial oversight.

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