BMO Capital analyst Katja Jancic maintained a Hold rating on Ryerson Holdings (RYI – Research Report) yesterday and set a price target of $25.00.
Katja Jancic’s rating is based on several factors including Ryerson Holdings’ recent financial performance and strategic focus. The company reported an in-line adjusted EBITDA for the fourth quarter of 2024, with an optimistic outlook moving forward, which has led to increased estimates. While earnings are expected to improve significantly in the first quarter of 2025 and throughout the year, the company is shifting its focus from investment to optimization and cost management, which should enhance profitability over time.
Despite these positive developments, there are certain factors that temper enthusiasm. Although market activities and order bookings have increased recently, pricing trends in some segments like stainless steel remain lagging. Additionally, while Ryerson’s financial position has improved since its IPO, and recent investments are expected to benefit future performance, these improvements appear to be already factored into the current stock price. Therefore, the Hold rating reflects a balanced view of the potential for future gains against the already reflected improvements in the stock price.
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