UPDATE: Topeka Capital Markets Initiates Coverage on A.M. Castle with Hold Rating, $13 PT
In a report published Wednesday, Topeka Capital Markets initiated coverage on A.M. Castle & Co. (NYSE: CAS) with a Hold rating and $13.00 price target.
Topeka Capital Markets noted, “We are initiating coverage of A.M. Castle with a Hold rating and $13 price target, which offers limited upside from current levels. While we have a favorable view of both the commercial aerospace and oil and gas markets, which in aggregate represent almost 50% of revenue, we note approximately 45% of the Company's revenue is levered to the broader industrials market, which can be more sensitive to near-term fluctuations in fundamental conditions. Furthermore, the general nature of the service center industry is more transactional based and can also be more volatile during less certain economic periods. Given these factors combined with the Company's current debt-to-capital ratio of 46%, we are initiating coverage with a Hold rating.”
A.M. Castle & Co. closed on Tuesday at $12.37.
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