Wells Fargo Starts Commercial Metals Company (CMC) at Overweight

Wells Fargo initiates coverage on Commercial Metals Company (NYSE: CMC) with a Overweight rating and a price target of $61.00.

The analyst comments "Initiating at Overweight. We see EBITDA sharply improving ahead, with benefits principally from rebar price hikes recently announced and supported by fewer imports, steady demand, and contained new mill supply. While we see risk from new entrant Hybar at 700Kt/yr starting up H225E, we expect the supply displacing imports near term. We assume about half of the $120/t of cumulative price hikes stick, and do not believe consensus has priced in the benefit yet."

For an analyst ratings summary and ratings history on Commercial Metals Company click here. For more ratings news on Commercial Metals Company click here.

Shares of Commercial Metals Company closed at $55.42 yesterday.

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