X - Commercial Metals raised to Buy at BofA as rebar prices set to inflect higher

2023-04-05 15:54:30 ET

• Commercial Metals ( NYSE: CMC ) edged higher in Wednesday's trading, +0.9% , after Bank of America upgraded the steelmaker to Buy from Neutral with a $60 price target, while the bank downgraded Steel Dynamics to Neutral from Buy with a $123 target.
• Steelmakers including U.S. Steel ( X ), Cleveland-Cliffs ( CLF ) and Nucor ( NUE ) have been falling sharply this week on rising recession worries.
• BofA analyst Lawson Winder said he believes prices for hot-rolled coil - Steel Dynamics' ( NASDAQ: STLD ) primary product - are nearing a peak while prices for rebar - Commercial Metals' ( CMC ) primary product - are set to inflect higher.
• Commercial Metals ( CMC ) also should benefit from declining imports and incremental demand from higher infrastructure spending as well as reshoring-oriented industrial projects, according to Winder.
• Stronger steel margins in North America helped boost Commercial Metals' ( CMC ) FQ2 results, Vader Capital writes in an analysis published recently on Seeking Alpha .

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