2023-07-05 13:37:14 ET
Ryerson Holding’s ( NYSE: RYI ) stock fell as much as 6.7% to $41.14 a share on Wednesday after analysts at BMO Capital Markets downgraded the processor and distributor of industrial metals to Market Perform from a previous investment rating of Outperform.
They said Ryerson has a more balanced risk-reward ratio after its stock rose 46% this year through July 3.
“Ryerson has significantly improved its financial/operational position since its 2014 IPO, and continued focus should translate to further improvements over time,” Katja Jancic, analyst at BMO Capital, said in a July 5 report, “but current valuation, coupled with currently limited positive catalysts in our view.”
BMO Capital has a target price of $45 a share on Ryerson ( RYI ), representing a multiple of 6.3 times estimated EBITDA for 2023 and 7.3 times estimated EBITDA for 2024.
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Ryerson Holding declines after downgrade to Market Perform at BMO Capital