Jefferies Initiates Coverage On CMC

Jefferies has initiated coverage on Commercial Metals Co. CMC with a Hold rating and a $16.50 price target. IN the report, Jefferies writes, “We're initiating coverage on CMC with a HOLD rating and $16.50 price target. Though valuations appear favorable on longer term earnings prospects, losses in its N.A. fabrication and Croatian steel business along with lagging U.S. non- residential construction trends dim our outlook on the shares. Our $16.50 target price values the shares at 5.9x F2012E EBITDA; in line with historical long term multiples.” CMC closed yesterday at $14.36.