Intel stock spikes after report of possible US government stake
Investing.com - Wells Fargo initiated coverage on Commercial Metals Company (NYSE:CMC) with an Overweight rating and a price target of $61.00 on Thursday. The stock, currently trading at $58.36 with a market capitalization of $6.53 billion, has shown strong momentum with a 9.91% gain over the past week. According to InvestingPro data, three analysts have recently revised their earnings estimates upward for the upcoming period.
The financial services firm cited expectations for sharply improving EBITDA, which currently stands at $686.18 million, primarily driven by recently announced rebar price hikes. These price increases are supported by fewer imports, steady demand, and contained new mill supply. InvestingPro analysis indicates the company maintains a GOOD financial health score of 2.62, with liquid assets significantly exceeding short-term obligations at a current ratio of 2.86.
Wells Fargo acknowledged potential risk from new entrant Hybar, which is expected to start up with 700Kt/yr capacity in the second half of 2025. Despite this, the firm expects the new supply will displace imports in the near term rather than disrupt the market.
The analysts assume approximately half of the cumulative $120/t price hikes will remain effective in the market. This price benefit does not appear to be fully reflected in the current consensus estimates, according to Wells Fargo’s analysis.
Commercial Metals Company manufactures, recycles, and markets steel and metal products, related materials, and services through a network of facilities throughout the United States and internationally.
In other recent news, Commercial Metals Company reported its third-quarter fiscal 2025 earnings, which fell short of analyst expectations. The company posted earnings per share of $0.74, below the forecasted $0.84, and revenue reached $2 billion, slightly under the anticipated $2.05 billion. UBS has raised its price target for Commercial Metals to $56 from $48, maintaining a Neutral rating. This adjustment follows recent increases in rebar prices and expectations of reduced imports in the latter half of 2025. The investment firm also highlighted Commercial Metals’ plans for margin improvement, citing its strong position in a consolidated rebar market. Additionally, the company appointed Dawne S. Hickton to its Board of Directors, expanding the board to ten members. Hickton will serve on the Audit and Finance Committees, bringing her expertise to the company’s governance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.