JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
On Monday, KeyBanc Capital Markets adjusted its financial outlook for Olympic Steel, a company traded on NASDAQ under the ticker ZEUS. The firm’s analyst, Samuel McKinney, increased the price target to $43.00, up from the previous $42.00, while reaffirming an Overweight rating on the stock. Currently trading at $37.88, the company maintains a "GOOD" overall financial health score according to InvestingPro analysis.
The adjustment follows the company’s strong performance in the fourth quarter of 2024 and a detailed analysis by KeyBanc. Despite a slight reduction in the 2025 outlook due to a modest year-over-year increase in expenses such as depreciation & amortization, interest, and LIFO expense, the firm anticipates that the first quarter of 2025 will mark the lowest point for earnings per share (EPS) for the year. This expectation is based on the impact of lagged contract pricing and timing headwinds.
McKinney highlighted that Olympic Steel possesses considerable liquidity, which is expected to support its mergers and acquisitions (M&A) growth strategy in the coming quarters and years. The company’s free cash flow to equity (FCFE) is believed to be counter-cyclical, providing additional financial stability and growth potential.
The new price target of $43 is founded on KeyBanc’s establishment of its 2026 earnings estimates, which project robust year-over-year growth in both EPS and earnings before interest, taxes, depreciation, and amortization (EBITDA) for Olympic Steel.
Investors and market watchers will likely monitor Olympic Steel’s financial performance closely as it navigates through the fiscal year, leveraging its strong liquidity and strategic growth initiatives to enhance shareholder value. With analysts forecasting EPS of $3.18 for FY2025 and the company maintaining dividend payments for 19 consecutive years, Olympic Steel presents an interesting case for value investors. For deeper insights into Olympic Steel’s valuation and growth prospects, access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with detailed analysis and actionable intelligence.
In other recent news, Olympic Steel reported its fourth-quarter 2024 earnings, which fell short of expectations. The company posted an earnings per share (EPS) of $0.13, missing the forecasted $0.17, while revenue reached $418.78 million, below the anticipated $462.6 million. Despite these misses, Olympic Steel increased its quarterly dividend, demonstrating confidence in its financial health. The company also announced the strategic acquisition of Metalworks for $80 million, aiming to expand its product offerings. Analysts from firms like KeyBanc Capital Markets have shown interest in the potential synergies from this acquisition. Olympic Steel’s total sales for 2024 were reported at $1.9 billion, with a net income of $23 million. The company’s adjusted EBITDA for the year was $72.5 million, indicating resilience despite industry challenges. Looking forward, Olympic Steel plans to invest $35 million in capital expenditures for 2025 to expand and modernize its operations.
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