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Investing.com - Jefferies downgraded Commercial Metals Company (NYSE:CMC) from Buy to Hold on Thursday, maintaining a $70.00 price target as the stock reached year-to-date highs. The stock has shown remarkable momentum, posting a 33.12% gain over the past six months according to InvestingPro data.
The downgrade comes after CMC shares rallied to their highest point of 2025, prompting valuation concerns from the research firm.
Jefferies cited a lower capital return trajectory due to recently announced acquisitions as another factor behind the rating change.
The firm also expressed a more positive near-term fundamental outlook on flat-rolled steel compared to rebar, which affects CMC’s business prospects.
Jefferies calculated a fair value range of $67-$70 per share for Commercial Metals based on various valuation methodologies, including NPV, sum-of-the-parts, and target EV/EBITDA multiples for the pro forma company.
In other recent news, Commercial Metals Company reported its fourth-quarter 2025 earnings, exceeding Wall Street expectations. The company achieved an earnings per share of $1.37, surpassing the forecasted $1.35, while revenue reached $2.1 billion, slightly above the anticipated $2.09 billion. Despite these positive results, Jefferies downgraded Commercial Metals from Buy to Hold, maintaining a price target of $70.00. This downgrade follows the company’s announcement of its second acquisition of a precast concrete solutions supplier. The stock had reached a year-to-date high prior to this adjustment. However, concerns about the company’s debt influenced Jefferies’ decision. These developments highlight the dynamic nature of Commercial Metals’ recent activities and financial performance.
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