KeyBanc downgraded Commercial Metals to Sector Weight from Overweight without a price target. The analyst says the shares are near the firm’s previous price target while it made modest downward estimate revisions to reflect recent margin pressures. Commercial Metals will be a primary beneficiary from the multiyear U.S. infrastructure bill and organic investments in low-cost capacity, but some slowdown in private sector capex amid inflation and interest rate pressures will act a demand outlook "ballast," the analyst tells investors in a research note. KeyBanc believes catalysts are largely captured in the shares.
Published first on TheFly
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