Commercial Metals initiated with a Buy at Goldman Sachs

Goldman Sachs analyst Mike Harris initiated coverage of Commercial Metals (CMC) with a Buy rating and $75 price target The prevailing sentiment towards the U.S. steel industry seems pessimistic given concerns on global over supply and weak but improving pricing, the analyst tells investors in a research note. The firm is more positive given its belief that both cyclical and structural factors could drive earnings growth for the domestic steel industry despite a weaker global backdrop. Goldman believes the U.S. steel industry and the stocks are near or at the trough of the current cycle.