KeyBanc maintains Overweight rating on Worthington Steel with $40 target

On Thursday, KeyBanc reiterated its Overweight rating on Worthington Steel Inc (NYSE:WS) with a steady price target of $40.00. The firm's stance follows the review of the company's first-quarter 2025 results, which concluded in August.

The financial institution expressed continued interest in Worthington Steel's performance, highlighting the company's effective operational execution and an upward trend in normalized profit metrics. The firm's analysts find the valuation compelling and suggest that, with successful growth initiatives, the stock could potentially reach a longer-term range between $40 and $50.

Worthington Steel's latest quarterly outcomes have prompted KeyBanc to adjust its estimates while maintaining the existing Overweight rating and price target. The firm's analysis suggests that the company's strategic efforts are aligning with its financial goals.

The reaffirmed price target of $40.00 reflects KeyBanc's confidence in Worthington Steel's strategic direction and its capability to achieve the set objectives. The firm's analysts believe that the company's stock holds promise, provided that the growth initiatives are effectively executed.

KeyBanc's evaluation of Worthington Steel's stock presents an optimistic outlook, with the potential for the stock to experience a rise in value within the projected range if the company continues to execute its growth strategies successfully.

In other recent news, Worthington Steel has been the focus of attention due to its strong performance at the end of fiscal year 2024. Analyst firm KeyBanc has retained its Overweight rating and a $40.00 price target for the company, indicating a sustained confidence in its business operations. KeyBanc's outlook suggests that with successful growth strategies, Worthington Steel's share price could potentially reach between $40 and $50.

Worthington Steel's consistent performance and strong operational execution have been highlighted, with specific mention of its upward trend in normalized profitability. This key metric provides insight into the company's core earnings and financial health, excluding one-time events or seasonal fluctuations.

Also, Worthington Steel has caught the attention of KeyBanc Capital Markets, which has raised its stock price target from $39 to $40. This adjustment follows a comprehensive tour of Worthington Steel's Columbus Steel operations and discussions with top executives.

Improved value-added spreads and an increased potential for accretive mergers and acquisitions were cited as the main reasons for the revised earnings per share estimates and price target.

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