Commercial Metals price target lowered to $50 from $58 at BMO Capital

BMO Capital lowered the firm’s price target on Commercial Metals to $50 from $58 and keeps a Market Perform rating on the shares after its Q4 earnings miss. The company’s Q1 earnings are expected to decline sequentially on margin compression and seasonally softer volumes, the analyst tells investors in a research note. The firm adds that while Commercial Metals’ growth investments, product mix and low-cost structure position it well to benefit from the ongoing and future on-shoring and infrastructure spending trends, the currently murky outlook keeps BMO on the sidelines despite the recent sell-off in the shares.