UBS downgraded Commercial Metals (CMC) to Sell from Buy with a price target of $56, down from $62. Despite “weak” steel sector Q3 results and Q4 outlooks amid “disappointing” pricing and demand data, Commercial Metals shares are up over 25% from the September lows, the analyst tells investors in a research note. The firm says steel is perceived as a relative winner from President-elect Trump’s protectionist policies. UBS still expects a recovery in steel demand and prices into 2025, but after the recent rally in the stocks and an increase in interest rate expectations, it finds the risk/rewards as more balanced. The firm points out Commercial Metals has held onto most of the post-election gains despite being hit with a $330M court ruling.
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