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UBS has issued a double downgrade for Commercial Metals Company (CMC), lowering its rating from Buy to Sell, reflecting a bearish outlook on the steel industry. The firm also downgraded Steel Dynamics (STLD) and Nucor (NUE) to Neutral, citing a less compelling risk-reward profile for the sector.
UBS has issued a double downgrade for Commercial Metals Company (CMC), lowering its rating from Buy to Sell, reflecting a bearish outlook on the steel industry. The firm also downgraded Steel Dynamics (STLD) and Nucor (NUE) to Neutral, citing a less compelling risk-reward profile for the sector.
UBS has downgraded Nucor Corp and Steel Dynamics to "neutral" from "buy," and Commercial Metals to "sell," citing less attractive risk-reward dynamics after a recent rally. The downgrades follow weak third-quarter earnings and disappointing fourth-quarter guidance amid ongoing pricing and demand pressures in the U.S. steel sector. UBS anticipates a recovery in demand and prices by 2025, but warns of risks, particularly for first-quarter estimates, influenced by a higher yield curve post-election.
UBS has downgraded Nucor Corp and Steel Dynamics to "neutral" from "buy," and Commercial Metals to "sell," citing less favorable risk-reward dynamics after a recent rally. The downgrades are attributed to weak Q3 earnings, disappointing Q4 guidance, and ongoing pricing pressures in the U.S. steel sector. While UBS anticipates a demand recovery by 2025, risks remain, particularly for first-quarter estimates, with price targets set at $149 for Steel Dynamics, $156 for Nucor, and $56 for Commercial Metals.
Commercial Metals Company has been downgraded from Buy to Sell by UBS. The company provides essential products and technologies for the global construction sector, with operations divided into three segments: North America Steel Group, Europe Steel Group, and Emerging Businesses Group, which includes construction services and high-performance reinforcing steel solutions.
UBS has downgraded its ratings for Steel Dynamics, Nucor, and Commercial Metals Company. This decision reflects a shift in the financial outlook for these companies within the steel industry. Investors should consider the implications of this downgrade on their portfolios.
Commercial Metals Company operates in North America and Europe, processing and selling ferrous and nonferrous scrap metals to various manufacturers and foundries. The company recently received a "sell" rating from UBS Group, with a price target of $56, indicating a potential downside. Analysts have mixed ratings, with one sell, three hold, and three buy ratings, while the stock has a market capitalization of $7.02 billion and reported earnings of $0.90 per share, slightly missing estimates.
UBS has downgraded several steel companies, including Steel Dynamics and Nucor, to Neutral, while Commercial Metals Company has been downgraded to Sell. The analysts believe Steel Dynamics' stock will take a "breather" following its recent outperformance.
Commercial Metals Company provides essential products and technologies for the global construction industry, supporting various applications such as infrastructure and power generation. Its operations are divided into three segments: North American Steel Group, European Steel Group, and Emerging Business Group, which includes construction services and high-performance reinforcing steel products.
Commercial Metals Company delivers essential products and technologies for the global construction sector, addressing reinforcement needs across various applications, including infrastructure and buildings. The company operates through three segments: North America Steel Group, Europe Steel Group, and Emerging Businesses Group, offering a wide range of solutions, from recycling facilities in Poland to high-performance reinforcing steel products.
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