KeyBanc Downgrades Ryerson Holding (RYI) to Hold

KeyBanc downgraded Ryerson Holding (NYSE: RYI) from Buy to Hold.

Analyst Philip Gibbs said, "For the U.S. steel distributors, we expect gross margins to remain a headwind (deflationary pricing), offsetting modest volume growth. We are downgrading RYI from Buy to HOLD. While we continue to appreciate RYI’s longer-term opportunity (i.e., structural changes to its product mix and potential for modest debt refinancing tailwinds), we are moving to the sidelines given what we believe are aggressive Street expectations and fair valuation (8.2x EV including pension/FIFO EBITDA) in the face of our reduced pricing/margin estimates. Additionally, we think the stock could see an overhang until a new President/CEO is announced."

For an analyst ratings summary and ratings history on Ryerson Holding click here. For more ratings news on Ryerson Holding click here.

Shares of Ryerson Holding closed at $9.60 yesterday.

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