Goldman Sachs Maintains Rating, PT On RS

Goldman Sachs is maintaining its Buy rating and its $64 price target on Reliance Steel and Aluminum RS, based on 1Q results. According to Goldman Sachs, “Reliance Steel, once again exhibited strong performance, generating higher revenue and a solid gross margin (26.5% or 27.5% on FIFO adjusted basis). The company is benefiting from its exposure to energy and aerospace markets and general recovery in the industrial economy. Despite a very weak non-res construction market (about a third of RS revenue), its ability to generate above-peer margins keep us positive on the name.” RS closed at $56.81 yesterday.