UPDATE: Topeka Capital Markets Initiates Coverage on Reliance Steel & Aluminum with Hold Rating, $70 PT on Valuation, Macro Headwinds

In a report published Wednesday, Topeka Capital Markets analyst Daniel Whalen initiated coverage on

with a Hold rating and $70.00 price target. In the report, Topeka Capital Markets noted, “As one of the largest domestic service centers, we believe the Company is well positioned to benefit from an eventual recovery in consumption growth trends in key metals and end markets such as carbon steel and non-residential construction. Historically, acquisitions have also served as an incremental growth engine for the Company and we expect management to continue to capitalize on opportunistic acquisitions in this highly fragmented industry. However, given the current valuation and macro headwinds, we would wait to initiate or add to positions.” Reliance Steel & Aluminum closed on Tuesday at $65.05.