Jefferies Assuming Coverage Of RS

Jefferies is assuming coverage of Reliance Steel and Aluminum RS with a Buy rating and a price target of $69, up from its previous $66. In the report, Jefferies writes, “We assume coverage of RS with a Buy rating and $69 price target. Following the -19% pull back in prices from YTD peaks, valuations are notably attractive and underestimate the company's long term earnings potential following its acquisition and expansion activity during the downturn. Our $69 price target values the shares at 7.0x 2012E EBITDA; in line with long term historical average multiples.” RS closed yesterday at $49.64.