Wells Fargo Initiates Coverage on Commercial Metals (CMC) Amid Rebar Price Increases

Commercial Metals Company (NYSE:CMC) ranks among the best mid-cap materials stocks to buy now. On August 14, Wells Fargo began coverage of Commercial Metals Company (NYSE:CMC) with a $61 price target and an Overweight rating. The firm stated that it expects EBITDA, which is currently $686.18 million, to increase significantly due to the recently announced increases in rebar prices.

On the other hand, newcomer Hybar, which is expected to launch with a 700Kt/yr capacity in the second half of 2025, posed a possible concern, according to Wells Fargo. In spite of this, the firm believes that the new supply will soon displace imports rather than cause a market disruption.

About half of the total price increases of $120/t, according to the analysts, will continue to be effective in the market. Wells Fargo’s analysis suggests that the current consensus forecasts fail to account for this pricing benefit.

In addition to manufacturing, recycling, and marketing steel and metal products, Commercial Metals Company (NYSE:CMC) also provides related materials and services.

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Disclosure: None. This article is originally published at Insider Monkey.