UPDATE: Jefferies Reiterates Hold Rating, Raises PT on Olympic Steel Following 2Q13 EPS Miss

In a report published Monday, Jefferies analyst Luke Folta reiterated a Hold rating on Olympic Steel ZEUS, and raised the price target from $21.00 to $26.00. In the report, Jefferies noted, “2Q13 EPS of $0.23 missed (-$0.04) our Street-low estimate and consensus due to higher OpEx/interest, versus our model. ZEUS' efforts on working capital reduction and balance sheet improvement however have exceeded our est YTD and it introduced a $4M cost reduction program it expects to complete in 3Q13. These improvements noted, we stay at HOLD given our expectation of continued gross margin pressure and valuations.” Olympic Steel closed on Friday at $28.46.